Good morning to all,

I have a questions regarding the architects compensation throughout the course of the design (B101). I know the architect can be compensated based on a percentage(%) for the Cost of the Work, Lump Sum or at an hourly rate. My question is if the architect sets his fee as a percentage for the Cost of the Work, how will he be payed throughout the design phases if the actual Cost of the Work will be identified and set under the Bidding Phase?

Thank you,

Oscar

Coach!

Just to understand the concept, if Architect is charging as a percentage based, and for example, knows that the owners initial budget of the Cost of the Work is $1,000,000 and Architect charges 6% of the total Cost of the Work, he will eventually be receiving a total of $60,000. Though the actual Cost of the Work will eventually be given until selecting the lowest bidder. Therefore, if working through the SD phase which is a 15%-20% of the Architect Basic Service, he will charge the initial budget of the owner which is $1,000,000 and has 15% completed thus far he will then receive $9,000 ($1,000,000 x 6% x 15%) and so forth as design reaches the Post Bid Phase, correct?

The architect will then get compensated for the remaining amount and subtracting what he has been given.

Thank you,

Oscar

Thank you very much Coach!

Appreciate the time and assistance with this question. It all makes sense.

Oscar