Typical Design Fee Structures
Houses come about in a few ways...
1. DESIGN & BUILD: A property owner hires a designer. They work together on a house layout and scope. The focus is often on the plan with some exterior style of the house considered. Often the space and interiors is a secondary thought with little visualization. A property owner can also hire a design/build contractor. There is a design fee cost to this level of design but less than the design forward architect.
2. DESIGN ARCHITECT: A property owner hires an architect for innovative design. They are excited about the design process. They want multiple options. And they desire customer care all the way through completion. The client is happy to pay alot for a design process and journey.
3. OFF THE SHELF: A developer creates a design. They build on a spec model or many in a tract. Owner likes what they see and buys off the MLS with little design input. There is little to no cost regarding hiring a designer.
DESIGN & BUILD
Designers and Design/Build Contractors will have different version of this. We are wanting to get people back into their homes as fast as possible, while recognizing that those design and layouts most likely could have improved greatly. We are really good at space making and working with first time homeowners. However we are typically full service design architects. We love that. You can hire us for that, but most rebuild homeowners are not looking for that. This is what we are offering:
Fee: an Hourly Not-to-Exceed agreement of $25,000.
We ask that the homeowner gets as-builts made, which we can arrange. We then will alter their original house design within the NTE mentioned. We are very good working with first time homeowners and at guiding owners through the design process. We do however want to limit the time we spend on this smaller, not full design project and we propose a limited involvement during Permitting and Construction Administration. Persons specific to those tasks will consult, someone such as an expeditor.
Homeowners can still benefit from Bunch Designs design skills, material selections, and experience with homeowners, but we ask that its limited more to 2-3 months instead of the 2-3 years that the full Design Architect service can be.
Additional costs include:
As-builts $1200, Misc Costs $1000, Structural Engineer $4000, Expeditor $5000
Permits and Fees $3000-$6000, Site Survey $3500 (if desired)
This approach is working to be between 5%-7% of construction cost, which is pretty good. And is hourly and so can be less or more.
Please fill out the as-built form to get this started. We are currently working with many homeowners on As-Built Rebuilds to get the community back as quickly as possible.
DESIGN ARCHITECT
A typical agreement contains 5 phases. 3 design phases, a Permit phase, and Construction. There are multiple design options, a lot of soul searching, even some financial master planning of your property as one thinks about the property over time and over the life of the owner, Everything is bespoke and there is a real interest in the design of the house. Delight is the goal.
A Design Architect is typically based on the construction cost. Because the scope, details, and materials are evolving, the cost is considered the most accurate gauge of the projects complexity. Because of this the Design Architect’s Fee is often based on the cost of construction.
FEE: will range from 12-16% of construction cost for projects under $1 million.
The design architect is with the owner for all phases and a project can often last 2-3 years total. These rebuilds will all take approximately this long. The difference is that with a full design process the architect is with you to make suggestions and changes throughout even past the move in date.
Outside of this fee amount mentioned above are other Soft Costs such as permitting, engineering and misc. costs. Expect all other costs to add up to be around 20% of construction cost (this includes the architect fee mentioned above). This is a common way of figuring costs
Construction Cost + Soft Costs=Total Project Cost.
Bunch Design is typically this Full Design Service and we are happy to continue. What you see on the projects page is mostly this. the difference is that we make gorgeous spaces for reasonable cost/ square foot and we work with first time owners other that are often underserved by great architecture.
OFF THE SHELF
There will be Contractors offering fully resolved designs with slight design changes on a spec/tract house model. These designs may be smaller than your previous home and thus still qualify you for the 110% “Like-for-Like”. These contractor/ developer options may also include financing and benefit from construction cost savings if many are done at the same time. If you request changes, they may or may not charge for that. They may also charge separately for making the design permit ready including engineering and permitting. There is a moratorium on them offering services, but this will be over soon. Expect a flood of options.
The Catalogs promise on a similar model. They are however building up their design offering now and may have less construction experience than the tract/spec builders mentioned above. Their main benefit is that they are trying to design in a manner representative of the neighborhood and are local.
How much will the Catalogs charge for their design? If there is no change to the design then the option you pick still needs to be positioned on your lot. Your lot has specific zoning and legal requirements and these will need to be applied to the design.
Fee: Potentially none and included in the contractor/ developer spec offer. Will just be part of the design/ build construction cost
or as per the Altadena Collective who is a Catalog
$15,000 for no changes
$25,0000 with some changes
$35,000 with extensive changes
There will be a cost for the design, it just may be buried in the Construction Cost or handled modestly as a separate expense like the Design & Build option. Permit fees, Engineering, all of this will occur and will cost. I would expect it to be 5%-7% of the construction cost.
Bunch Design is offering that for any projects designed and permitted as “Like for Like” rebuilds we will offer its Doppelganger at cost which will be steeply discounted and permit nearly as pre-approved. (There is no pre-approved in LA County, and based on discussions, any offer is speculation)