A GUIDE TO
Determining Appropriate Fees for the Services of an Architect
Architect's Compensation | 23
Royal Architectural Institute of Canada | RAIC.ORG
PROJECT DELIVERY
METHOD
Constrained Factor
Schedule Cost Performance/Quality
Design-Bid-Build
• Schedule certainty can only be
achieved at the expense of cost
and performance. The comple-
tion of design documents, and
therefore the project schedule,
may be delayed if project
requirements are incomplete,
complex or stakeholder inter-
estsareconicting.
• Through comprehensive
pre-design and conceptual
design information gathering,
analysis, and strategic design
decision-making, the risk is
mitigated but the schedule is
lengthened, and consulting
fees may increase.
• Building schedule elasticity into
the project plan may mitigate
risk.
• Thermconstructioncostis
not known until the design
is complete, tenders are
analyzed, and negotiations
completed.
• The risk is mitigated but
consulting fees are increased
through progressive cost esti-
mations throughout the design
and documentation phases.
• Cost risk is mitigated by includ-
ing project contingencies
• Performance and quality are
rmlyestablishedthroughout
the design process.
Design-Build
• The schedule for project de-
livery, along with cost, should
beidentiedandstatedin
the contract. Elasticity in the
schedule may be required to
accommodate unexpected
market conditions.
• The schedule may or may not
be accelerated depending on
the extent of the client’s need
to approve the design and
specications.
• A commitment to the construc-
tion cost is established early in
the project.
• Cost certainty is predicated
on the client, providing the
design-builder with a compre-
hensive and well-developed
statement of project require-
ments at the outset.
• Changes to the requirements
leading to design-phase or
construction-phase changes
may result in disproportionate
cost increases.
• The performance/quality of the
outcome may not be complete-
ly known until the project is in
construction.
• The design team is under the
authority of the design-builder,
not the client.
• The risks are mitigated through
the client’s development of a
comprehensive requirements
document and the engagement
of an advocate architect/en-
gineering team who monitor
design and construction on
behalf of the client. Both risk
mitigation strategies increase
consulting fees and possibly
lengthen the project schedule.
Construction
Management
• The schedule may be accelerat-
ed through fast-tracking and/or
sequential tendering.
• Fast-tracking requires a
signicantamountofaddi-
tionaleortinmanagingthe
design and coordinating the
design and construction work.
Fast-tracking results in an
increased risk of design and
construction rework, along with
the resulting additional fees
and construction costs.
• The client must commit to de-
sign and construction without a
rmconstructioncost.
• The risk is mitigated through
progressive cost estimation
and input from contractors,
trades, and product manu-
facturers. This may require
additional consulting services
and fees.
• Cost cutting measures resulting
in reduced performance/quality
may be required at later stages
in the design and construc-
tion to bring the project in to
budget.
• The risk is mitigated by devel-
opingatrade-oplanearlyin
the project to support strategic
decision making. This requires
additional services and fees.
TABle 8 Risk Proles Related to Project Delivery Methods
1.2.2.5 | Fee Adjustment Factors Related to Project Delivery Method and Project
Change and uncertainty are inherent in undertaking projects. Project endeavours and risk are
inseparable, and no amount of planning can remove ALL project risks. Again, at the possibility of
over-simplication,eachdesign/constructionprojectdeliverymethod has a general risk prole. To
establish a fair exchange of value, the client and architect must recognize alignment of the project
deliveryriskprolewiththeirrespectiverisksensitivities.