Examples of accounts
Here are two typical examples of accounts to demonstrate how an architect's fees are calculated. The first example is a relatively small project, alterations and additions to an existing home, with a budget of R200 000.00. The second is a larger project, a brand new building, with a R2 000 000.00 budget. Please note that the discounts given in both accounts are for illustrative purposes only. Discounts, where applicable, will vary between projects depending on the unique character of each project.
The architectural fees are equal to a percentage of the project cost. The larger the building cost, the smaller the percentage used to calculate the fees. The fees are increased in the case of alterations and additions.
These calculations are based on "Recommended Tariffs and Fees" (Board Notice 161 of 2001). Current tariffs and fees are available on request.
Example A
Alterations and additions to an existing home
R200 000.00 construction budget
A1. General
| 1.1. | Thank you for appointing us as the architects on this project. |
| 1.2. | Our services and fees are limited to the work set out in the "Recommended Tariffs and Fees" (Board Notice 161 of 2001 / Architectural Profession Act, 2000). |
| 1.3. | Our fee is equal to a percentage of the project cost. This fee is payable in portions. Each portion is due after the completion of a stage (5 stages in total). |
| 1.4. | The provisional budget is R200 000.00 (VAT inclusive). |
| 1.5. | Our fee should be R32 500.00. (Please see note below.) For payment upon presentation of this account we gladly give a 10% pro amico bono discount, which brings our fee down to R29 250.00. |
| 1.6. | Our fee is based on an estimated building cost and will be adjusted to reflect the true cost of the project after the contractor's quotations have been received. |
| 1.7. | Recoverable disbursements (municipal fees, reproduction costs) will be added to the applicable accounts. |
| 1.8. | Please note that other professional fees such as the engineer's and surveyor's are excluded from ours. |
A2. Calculation of architect's fees
| 2.1. | Provisional budget: | R | 200 000.00 | |
| 2.2. | 12.5% fee for cost bracket 1 (R1 - R300 000): | R | 25 000.00 | |
| 2.3. | Increased by 30% for alterations and additions: | R | 7 500.00 | |
| 2.4. | Total fee for stages 1 to 5: | R | 32 500.00 | |
| 2.5. | 10% discount for payment upon presentation: | R | 3 250.00 | |
| 2.6. | Total discounted fee for stages 1 to 5: | R | 29 250.00 |
| Stage | % total fee | R value per stage | 10% discount per stage | R value discounted fee | ||||||||||
| 1 2 3 4* 5** TOTAL |
5% 15% 15% 40% 25% 100% |
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* Usually half (20%) is payable when building plans are handed in for local authority approval, the other half (20%) is payable when sufficient documentation has been compiled to ask for tenders from building contractors.
** A portion of this stage's fee may not be payable to the architect, should this portion of the work not be done by the architect but by a quantity surveyor. This pertains mainly to the issuing of payments to the building contractor.
Example B
New building
R2 000 000.00 construction budget
B1. General
| 1.1. | Thank you for appointing us as the architects on this project. |
| 1.2. | Our services and fees are limited to the work set out in the "Recommended Tariffs and Fees" (Board Notice 161 of 2001 / Architectural Profession Act, 2000). |
| 1.3. | Our fee is equal to a percentage of the project cost. This fee is payable in portions. Each portion is due after the completion of a stage (5 stages in total). |
| 1.4. | The provisional budget is R2 000 000.00 (VAT inclusive). |
| 1.5. | Our fee should be R178 390.00. (Please see note below.) For payment upon presentation of this account we gladly give a 10% pro amico bono discount, which brings our fee down to R160 551.00. |
| 1.6. | Our fee is based on an estimated building cost and will be adjusted to reflect the true cost of the project after the contractor's quotations have been received. |
| 1.7. | Recoverable disbursements (municipal fees, reproduction costs) will be added to the applicable accounts. |
| 1.8. | Please note that other professional fees such as the engineer's and surveyor's are excluded from ours. |
B2. Calculation of architect's fees
| 2.1 | Provisional budget: | R | 2 000 000.00 | |
| 2.2 | R28 390.00 + 7.25% fee for cost bracket 4 (R1 336 001 - R2 672 000): | R | 28 390.00 | |
| + R | 150 000.00 | |||
| = R | 178 390.00 | |||
| 2.3 | No alterations and additions are involved, therefore fees do not need to be increased as in Example A. | |||
| 2.4 | Total fee: | R | 178 390.00 | |
| 2.5 | 10% discount: | R | 17 839.00 | |
| 2.6 | Total: | R | 160 551.00 |
| Stage | % total fee | R value per stage | 10% discount per stage | R value discounted fee | ||||||||||
| 1 2 3 4* 5** TOTAL |
5% 15% 15% 40% 25% 100% |
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* Usually half (20%) is payable when building plans are handed in for local authority approval, the other half (20%) is payable when sufficient documentation has been compiled to ask for tenders from building contractors.
** A portion of this stage's fee may not be payable to the architect, should this portion of the work not be done by the architect but by a quantity surveyor. This pertains mainly to the issuing of payments to the building contractor.
Addendum
Project cost based fee
Recommended scale of fees: Professional Architectural Services
| Cost bracket |
Cost of project (excluding VAT) | Fee (excl. VAT): base plus percentage of project cost | ||||||||||
| 1 2 3 4 5 6 7 8 9 10 11 12 |
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| 1. | These fees are recommended only and are open to negotiation. |
| 2. | A list of standard services included in the above and supplementary services excluded from the above is available on request. |
| 3. | Hourly rates are available on request. |
© charl de villiers / email: / last update: 2010-02-15