OK, we have had a mutually beneficial first meeting,
we have discussed your design needs and priorities, our thoughts on budget, described the design-build process, and both parties want to get a bit more serious. Wonderful! That means that we agree to walk together through Gate 2, and we will put some serious time and attention in putting together a written proposal to thoroughly plan the project for your review. We call this a pre-construction services proposal and it details how we will work together to design and price your project. This is the first agreement in the design-build model; the second agreement covers construction.
The Proposal Has Several Components:
- Project Philosophy: Why you want to work with us
- Project Goals: Why you want to invest in your home
- Project Scope/Starter Construction Budgets: What modules of work we will be exploring and what they might cost
- Associated Project Costs: Other costs you can expect besides construction
- Concept Phase, Services/Deliverables: Smart design solutions and more informed budgets
- Final Design Phase: Services/Deliverables—Design refinement, construction documents, final pricing, and securing the building permit
- Compensation: Fees to design the project
- Terms and Conditions: Ground rules during the planning phase
It’s a straightforward 3-page document, free of any legalese, which clearly points the way forward towards a construction agreement. We like to go over the proposal with you in person, here in our office, to make sure we can address any questions or concerns you may have. Alternatively, we can handle this by e-mail and review it over the phone, if that’s easier for you. Either way, we want to avoid surprises or misunderstandings by communicating clearly on what will happen, when, and for how much.
Design fees are billed hourly, with an initial payment due
when you sign the pre-construction agreement. We invoice monthly. Design fees range from 5% to 15% of the construction cost, depending upon the size, type, and complexity of your project. I am sorry I can’t be more specific here, but we do so many kinds of projects, it’s misleading to generalize. I can tell you that the larger the job, the lower the fee percentage tends to be.
