How to Calculate Fees and Cost of Construction.

These example fees are provided as samples of suggested minimum fees charged by Designers providing design services along with construction and permit drawings. Each designer provides different services, so the pricing may be adjusted according to your specific services and scope of work.

In determining the cost of construction it is good to begin with a discussion with the client about their budget. Ask them the target budget for construction of the project and also determine the high end budget if the project has cost overruns. This budget discussion will help you assess whether the project they are planning to build is realistic with the budget allotted and provide a basis for working out your estimated construction cost. While you may estimate the cost of construction it is important not to imply that your design can be built for that price as there are many variable that can create increased pricing.

After discussing the budget go over the details of the project, size, style, features, location, finish levels, and any other design considerations that can help you determine the pricing. You will need to keep apprised of current construction prices in your area as they are different from one community to the next. You can often find out local cost of construction by talking to builders in your area. The chart below shows the average cost of construction in BC. Cost of land, site works, utility connections and permits is not included in the cost of construction used in determining fees for design. Once you have estimated the cost of construction you can use the fee schedules to determine your design fees. Remember, these are suggested minimum fees, if you typically are charging more than the fees suggested you do not need to lower your pricing.

Example 1

Project Description: Single Family Home - Custom Home Design of a 2000 sq.ft. home with an unfinished basement, 500 sq.ft. attached garage, and 200 sq.ft. deck. Standard wood frame construction with 9’ ceiling heights throughout. House is to be average finishes, the property is a level lot with no need for geotechnical services. Clients budget $600,000 to $650,000. License to use final design and drawings for one single build.

Service Provided: Service Level 2 - Typical custom design services with working drawings for building permit and construction.

Calculating Estimated Cost of Construction: (IMPORTANT: These are example construction costs, you will need to have a grasp on the average costs in your area)
2000 sq.ft main floor x $200.00 per sq.ft.
2000 sq.ft. unfinished basement floor x $85.00 per sq.ft.
500 sq.ft. garage x $50.00 per sq.ft.
200 sq.ft. deck x $35.00 per sq.ft.
Total Estimated Cost of Construction: $602,000.00 x 1.75% = $10,535.00 plus taxes for Service Level 2.
Additional hourly fees may be charged if the scope of work changes during the design process at the discretion of the Designer.

Example 2

Project Description: Single Family Spec Home - Custom Home Design of a 2000 sq.ft. spec home with an unfinished basement, 500 sq.ft. attached garage, and 200 sq.ft. deck. Standard wood frame construction with 9’ ceiling heights throughout. House is to be average finishes, the property is a level lot with no need for geotechnical services. License to use final design and drawings for one single build.

Service Provided: Service Level 1 - Contractor pricing for design services with working drawings for building permit and construction.

Calculating Estimated Cost of Construction: (IMPORTANT: These are example construction costs, you will need to have a grasp on the average costs in your area)
2000 sq.ft main floor x $200.00 per sq.ft.
2000 sq.ft. unfinished basement floor x $85.00 per sq.ft.
500 sq.ft. garage x $50.00 per sq.ft.
200 sq.ft. deck x $35.00 per sq.ft.
Total Estimated Cost of Construction: $602,000.00 x 1.25% = $7,525.00 plus taxes for Service Level 1.
Additional hourly fees may be charged if the scope of work changes during the design process, the builder requires help with permit applications, or artwork is required at the discretion of the Designer.

Example 3

Project Description: Single Family Home - Custom Home Design of a 2000 sq.ft. home with an unfinished basement, 500 sq.ft. attached garage, and 200 sq.ft. deck. Standard wood frame construction with 9’ ceiling heights throughout. House is to be average finishes, the property is a level lot with no need for geotechnical services. Clients budget $600,000 to $650,000.

Service Provided: Service Level 3 - Full design service plus assistance with contracts and tenders, filing of permits, and provision of advice to client during construction (contract administration). License to use final design and drawings for one single build.

Calculating Estimated Cost of Construction: (IMPORTANT: These are example construction costs, you will need to have a grasp on the average costs in your area)
2000 sq.ft main floor x $200.00 per sq.ft.
2000 sq.ft. unfinished basement floor x $85.00 per sq.ft.
500 sq.ft. garage x $50.00 per sq.ft.
200 sq.ft. deck x $35.00 per sq.ft.
Total Estimated Cost of Construction: $602,000.00 x 4% = $24,080.00 plus taxes for Service Level 3. Additional hourly fees may be charged if the scope of work changes during the design process.

(In comparison for this level of service the AIBC requires an architect charge a minimum of 4.5% or $27,090.00 plus taxes.)

Example 4

Project Description: Single Family Home - Custom Home Design of a 2000 sq.ft. home with an finished basement, 500 sq.ft. attached garage, and 200 sq.ft. covered deck. Wood frame construction with 12’ ceiling heights throughout and large openings overlooking view. House is to be higher end finishes, the property is a hillside lot along a waterfront requiring geotechnical services, structural engineering and riparian consultation. Other professional fees will be paid by the client, however extra consultation is required. Clients budget is $1,000,000 to $1,200,000.

Service Provided: Service Level 2 - Typical custom design services with working drawings for building permit and construction.

Calculating Estimated Cost of Construction: (IMPORTANT: These are example construction costs, you will need to have a grasp on the average costs in your area)
2000 sq.ft main floor x $300.00 per sq.ft.
2000 sq.ft. finished basement floor x $185.00 per sq.ft.
500 sq.ft. garage x $50.00 per sq.ft.
200 sq.ft. deck x $50.00 per sq.ft.
Total Estimated Cost of Construction: $1,005,000.00 x 1.75% = $17,587.50 plus taxes for Service Level 2.
Additional hourly fees may be charged for consultation with other professionals or if the scope of work changes during the design process at the discretion of the Designer.

Example 5

Project Description: Multi-family Project - Custom Home Design of a 6000 sq.ft. four-unit townhouse on a slab foundation, 800 sq.ft. of total attached garage space, and 400 sq.ft. total covered decks. Standard wood frame construction with 9’ ceiling heights throughout. Townhome is to be average finishes, the property is a flat lot with an existing house to be demolished requiring geotechnical services and structural engineering. Other professional fees will be paid by the client, however extra consultation is required. Development permit drawings for rezoning and development are included in the pricing.

Service Provided: Service Level 2 - Typical custom design services with working drawings for development permit, building permit and construction.

Calculating Estimated Cost of Construction: (IMPORTANT: These are example construction costs, you will need to have a grasp on the average costs in your area)
6000 sq.ft main floor x $185.00 per sq.ft.
800 sq.ft. garage x $50.00 per sq.ft.
400 sq.ft. deck x $40.00 per sq.ft.
Total Estimated Cost of Construction: $1,166,000.00 x 2.0% = $23,320.00 plus taxes for Service Level 2.
Additional hourly fees may be charged for consultation with other professionals, artwork, attending City meetings, or if the scope of work changes during the design process at the discretion of the Designer.