Part 1

Architectural Contracts

Introducing Our Newest Resource: The Architectural Process Guide!

At A•SQUARED, we believe that architecture should be an open, transparent process—one that empowers clients, builders, and industry professionals with the knowledge they need to navigate a successful project. That’s why we’re excited to introduce our new Architectural Process Guide, a series of flash cards designed to break down key aspects of the architectural journey in a clear, accessible format.

You have made the decision to move forward with an experienced licensed Architect.

Working with an Architect can help transform challenges into opportunities. Architects play a crucial role in designing and building resilient, functional, and sustainable spaces that meet safety standards and aesthetic goals.

Part 01 of this guide outlines the key steps in understanding the importance of Architectural Contracts + Architectural Fees.

Architectural Contracts Are Formal Agreements

Contracts define scope, responsibilities, and expectations between the ‘Owner’ and the ‘Architect’ by outlining:

  • Project Team Members
  • Key Factors Important to The Client
  • Project Phases
  • Project Schedules
  • Architectural Fee Schedule - Investing in Design
  • Dispute Resolution
  • Liabilities
  • Ownership of Work

Architectural Contracts Establish Clear Communication

  • Providing a framework for revisions, payments + disputes
  • Creating a structured transparent working relationship
  • Reducing risks +ensuring both parties understand their rights + obligations

Key Components

Parties entering into the contract relationship

  • Client (Project Owner) • Including contact information
  • Consultant (Project Architect) •Including contact information +license number

Project description • scope of work

  • Including project location, goals, aesthetics, budget + program

Project responsibilities

  • Including project phases + identified schedule
  • A description of the Owner’s role + Architect’s role should be clearly defined

Project expectations

  • Including a description of the project phase + project schedule deliverables
  • Architectural Fee Schedule
  • Dispute Resolutions
  • Limitations of Liability
  • Contract legal provisions

How Architectural Fees Are Structured

Percentage of Construction Cost

  • Based on a percentage (often 5%–15%) of the total construction cost, this can encourage efficiency but requires clear definition of cost variables

Lump Sum •Fixed Fee

  • A predetermined total fee for the entire project. Best suited for well-defined projects with clear scopes

Cost Per Square Foot

  • The fee is based on the total square footage of the project. This can occur in residential or commercial projects where size dictates design complexity

Hourly Rate

  • The Architect charges per hour of work. This is useful for consultation, small projects, or unpredictable scopes of work or custom designs

Percentage of Construction Cost

PROS

  • Aligns architect’s fee with project complexity and scale
  • Encourages high-quality design that fits within a realistic budget
  • Works well for projects with evolving scopes

CONS

  • Can create conflicts if construction costs rise or fall unexpectedly
  • Clients may feel uncertain about final costs until construction is completed

BENEFITS TO THE ARCHITECT

  • Higher construction costs = higher fees
  • Less incentive to reduce the costs of the project
  • Unpredictable for the client with rising labor + material costs

This can be made fairer to the client by using fee caps or sliding scales, excluding cost increases, and creating a hybrid model where this model applies only to certain phases of work

Lump Sum

PROS

  • Provides cost certainty for the client
  • Easy to manage and budget for both parties
  • Best for well-defined projects with minimal scope changes

CONS

  • Can lead to disputes if the project scope changes significantly
  • Architect assumes more risk if unforeseen complexities arise

CONSIDERATIONS

  • May encourage the Architect to provide a lower value of service to ensure profitability
  • May lead to re-negotiations if the scope tends to change a lot
  • May end up costing the client more than other pricing structures due to assumptions made prior to work commencing

Cost Per Square Foot

PROS

  • Simple up-front pricing that is easy for clients to understand
  • Predictable for project budgeting if the size of the project is known
  • Encourages efficient design over complexity
  • Best for standardized (not custom detailed) projects

CONS

  • Not always reflective of design complexity
  • May disadvantage the Architect on small complex projects
  • Incentive for larger more simple designs
  • Difficult for unique projects + remodels

CONSIDERATIONS

  • Fees will vary based on project type, location, and complexity
  • Fees may range from $5.00 to $25.00 per SF
  • Project must be clearly defined from the onset to be beneficial to both the Architect and the Client

Hourly Rate

PRO

  • Fair for both the Client and the Architect
  • Great for unpredictable projects
  • Encourages a thorough design process
  • Easier to negotiate scope changes

CONS

  • Uncertainty for clients, may be hard to predict total costs
  • Potential for inefficiency in the Architects work
  • May require frequent justification • Client may question billed hours
  • Difficult for large scale projects

CONSIDERATIONS

  • Architect should provide hourly time logs or detailed invoices
  • Allows for design revisions throughout the process without re-negotiating
  • Encourages value based decision making

We View Architectural Fees As An Investment

Architectural fees should be viewed as in investment in quality + function + long term value

  • Rather than focusing on the lowest upfront cost, we prioritize value-driven architecture that enhances quality of life, durability, and long-term savings.
    Investing in a well-designed space today prevents expensive revisions, operational inefficiencies, and lower property values in the future
  • Investing in a professional can help to avoid costly errors in construction
  • A well planned building can reduce material waste
  • Value Driven Architecture prioritizes smart building techniques ensuring lower maintenance costs and durability
  • High quality architectural designs enhance property values

A•SQUARED Operates On A Value Focused Approach

Collaboration

  • We draw inspiration from our clients, shaping spaces that reflect their vision. By blending their ideas with our expertise in light, scale, and form, we create environments that feel both personal and profound

Continuity

  • From the first sketch to the final walkthrough, a founding principal guides the client journey, ensuring a seamless process and unwavering care every step of the way

Consciousness

  • Our design solutions will have an inherent connection to our clients, to its materiality, and to the environment it inhabits. Through thoughtful decisions, we create spaces that reflect care, balance, and harmony with the world around us

Download our architectural process guides

We’re excited to introduce our new Architectural Process Guide, a series of flash cards designed to break down key aspects of the architectural journey in a clear, accessible format.
Thank you! We will follow up soon, with more information about rebuilding your home.
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