Architects Fees, Minor Works Edition - sample pages

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Architects Fees Minor Works A survey of the fees charged by private architectural practices

2022

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

Architects Fees Minor Works 2022 edition

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts. th

The Fees Bureau 24 Architects Fees Survey Minor Works 2022 edition

0

Background

0.1 How the fees data is collected and analysed 4 0.2 Definitions 4

0.3 How to use the data 5

1

Architects Charge-out Rates 1.1 Charge-out rates overview

1.2 How charge-out rates vary by practice size 1.3 How charge-out rates vary by region

6 8 10

2

Architects Fees 2.1 Fees overview 12

2.2 How fees vary by building sector 14

2.3 How fees vary by region 16 2.4 Fee range 18 2.5 Stage payments 19

3

Changes & Trends 3.1 Changes in hourly rates and fees 32 Long-term changes in charge-out rates 3.3 Changes in fee levels, 2019 to 2020

20 21 22

4

Market Sectors Private Housing 26 Leisure 30 Offices 33 Retail 35 Industrial 37 Public & Community 39

Published by The Fees Bureau, a division of Mirza & Nacey Research Ltd ISBN: 978-1-913403 © Mirza & Nacey Research Ltd 2021 The information in this publication is based on a survey of architectural practices undertaken over the 12 month period ending in July 2020. Whilst every effort has been made to ensure the accuracy of information in this publication, Mirza & Nacey Research Ltd can accept no responsibility for any errors of fact, omissions, or opinions expressed. The information supplied should be used as an aid to decision making and not as the sole basis for taking such decisions.

Architects Fees Minor Works is copyright Mirza & Nacey Research Ltd. No extract or quotation may be published or broadcast without prior consent. www.feesbureau.co.uk

MIRZA & NACEY RESEARCH

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

0

background

Definitions

How fees data is collected As the construction contract value of individual jobs is also supplied, all fees data has been converted to percentages.

A question relating to hourly charge out rates was inserted into the July 2021 questionnaire. Survey data is collected continuously and analysed for the 12 month period to July 2021. This year’s data is added to data from previous years to create a larger and more statistically reliable dataset. Our thanks go to all the many architectural practices that have contributed fees data to this year’s survey.

This report has been compiled using data collected from private architectural practices throughout the UK by way of the Architects Quarterly Workload Survey. This survey, which was originally undertaken by the RIBA and is now carried out by Mirza & Nacey Research Ltd., is conducted amongst a sample of private architectural practices every three months. The sample aims to reflect the profile of the profession, both by size of practice and region.

The questionnaire seeks information about new jobs received by the practice - type of work, sector, whether new build or refurbishment, contract type, construction cost and fees charged.

Fees data is supplied by respondents as either a percentage or flat rate fee.

Please note, the information presented in this report is derived from data collected by way of a survey of private architectural practices. We accept in good faith the raw data provided to us by survey respondents.

How fees data is analysed values are examined and a decision is made whether to exclude or not. A ‘line of best fit’ is created through the data points using a modified regression analysis. This line is the average fees line. The example chart below shows how the average fees line is created from a sample of data points. For each there is a number of contract and building type permutations, presented separately - where available by building type and contract type.

The fees data is broken down by main building sector (private housing, retail, offices etc.) and within that by building type (new build or refurbishment) and by contract type (traditional or design & build). This provides up to four possible permutations for each building sector analysis. The data is plotted as a scatter chart, the x axis is total construction cost, the y axis is percentage fees charged. Any unusually high or low

12 10 8

Fee, per cent of total construction cost

6 4

12

all data points are plotted on the chart

10

2

8

0 0

1

6 4

2

3

4

5

6

extreme outliers are examined and may be removed a line of best fit through all the data points is created

7

8

9

2 0

00

4

251

502

75 3

100 4

125 5

150 6

Total construction cost £ 000s

Architects Fees Minor Works 2022 edition

175 7

200 8

225 9

250

10

Fees The charges made to provide a full architectural service ranging from Stage 1 to Stage 6 in the RIBA Plan of Work 2020: Stage 1 - Preparation & Brief Stage 2 - Concept design Stage 3 - Developed design Stage 4 - Technical design Stage 5 - Construction Stage 6 - Handover Principal The owner of a practice, whether Partner, Sole Principal or Director. Ownership may be by way of holding equity (partnership) or shares (Director in a limited company).

The term includes Sole Principals, many of whom are practising on their own as sole traders.

Architect A person who is registered with the Architects Registration Board (ARB).

For the purposes of the hourly rates data Architects are divided into Senior Architects, who have five or more years’ post qualification experience; and Architects, who have under five years’ post qualification experience.

Technical Staff S t a ff w h o h a v e re c e i v e d f o r m a l architectural training. These include a rc h i t e c t u r a l t e c h n o l o g i s t s a n d architectural assistants including year out students.

Architectural Staff All staff who have some architectural training. The term used here includes: principals, partners and directors; architects; technical staff.

10

Practice Size Measured in terms of the number of architectural staff, i.e. principals, directors, architects, technical staff, (as defined above) but excluding support staff and administrative staff.

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

How to use these statistics Hourly rates tables

Percentage fee charts

Hourly charge-out rates, on pages 6 to 9, are presented overall, by size of practice and by region for each of the main categories of architectural staff.

All data refers to the rates in effect on 1st July 2020.

The fees data is presented as a series of tables and charts based on the data collected by a survey of private architectural practices. Fees are expressed as a per cent of total building construction cost. The average fees line on each chart is an indicative ‘line of best fit’. Reported fees charged vary around this line; the range of fees charged for jobs is discussed on page 18.

line which reports on the data collected.

In some cases insufficient jobs have been reported to us so it is not possible to include the full range of four charts for all work and contract type combinations.

‘Fees’ relates to the full service provided by architects, Stages 2 to 6 in the RIBA Plan of Work (2020 or 2013), or Stages C to L1 in the 2007 RIBA Plan of Work. This full service will include: concept design; developed design; technical design; construction; handover. Fees exclude expenses and VAT.

From this point on the average fees line follow across to the left hand scale (y axis) to read off the percentage fees value.

Figures are presented as averages (medians), together with lower and upper quartiles. It is felt that the median is a more representative average than the mean as it is unaffected by any extremely high, or low, rates.

- the MEDIAN average is the middle value, when all data from survey respondents is listed in order of magnitude.

- the UPPER QUARTILE is the value which appears three quarters the way up this ordered list of data and marks the 75 per cent point in the data - the LOWER QUARTILE is the value which appears one quarter the way up this ordered list of data and marks the 25 per cent point in the data.

On the bottom scale (x axis) of this chart find the construction cost of your job.

Follow this point up until you reach the average fees line.

When considering the fees data please bear in mind the following: the ‘line of best fit’ on each chart is exactly that - a ‘best fit’ of the individual values reported. Some fee values reported will lie above the line, others below it.

Start by gaining an overview of these figures with the summary tables and charts on pages 12 and 13. These show average fees lines for the main types of building work (new build or refurbishment) and for two contract types (traditional or design & build).

the indicative lines of best fit take no account of the complexity of the work.

Next, find the building sector closest to the job you are seeking from the list on page 27. Once in the appropriate sector, you will find charts with the average fees

the scale on each chart may vary.

The range of construction costs charted reflects the range of jobs reported to us.

Worked example

How to calculate the average fee for a £160,000 project, under Traditional Contract

1

In Section 2 (page 25), select sector and sub-sector

2

Then choose the appropriate chart by choosing New Build or Refurbishment; and select Traditional or Design & Build contract

4

Read off the left axis to find the average fee, in this example the average fee = 8.0%

Fee, per cent of total construction cost 12 10 8 6

3

On the appropriate chart, find the construction cost of your job by reading off the bottom axis - in this example it is £160,000. Follow this point up until you reach the appropriate average fees line

4 2 0 0

50

100

150

200

250

Total construction cost £000

4

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

architects charge-out rates

1

1.1 Charge-out rates overview Highest average rates are charged

by Partners & Directors (£ per hour), followed by Associates (£ per hour) and Sole Principals (£ ). The average rate charged by Architects with less than 5 years’ experience and Technologists are very similar to each other at around £ .

The figures presented here are average (median and quartile) charge-out rates as at 1 July 2020. The average chargeout rates for salaried staff categories increase in line with practice size. The widest differential in charge-out rates by practice size is recorded by Partners & Directors. Those in practices with 30 or more staff have a charge-out rate

more than per cent higher than for a Partner/Director in a practice with fewer than 5 staff.

The inter-quartile range is relatively narrow for most staff categories, typically between £ and £ , while the range is much wider for Principals.

There is a particularly wide interquartile range amongst Sole Principals and amongst Partners & Directors in the largest practices.

London records the highest average r a t e s . T h e re g i o n a l m u l t i p l i e r (Table 1-15), shows the average uplift in rates for each region.

CHART 1-1 Average hourly charge-out rates for Principals by region

50

44

Architects Fees Minor Works 2022 edition

50

50

£ per hour

50

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

80

80

CHART 1-260

60

40

40

110

110

100

100

90

90

Average (median) charge-out rates and inter-quartile range between lower and upper quartiles 80 Inter-quartile range

Lower quartile Sole Principal

50

Partner & Director 50

Senior Architect

0

50

0 50

50

0

50

50

Year Out Student 50

Upper quartile

50

50

Arch. Assistant

2018

50

50

Technologist

2018 2010

50

50

Architect

80

50 50

Associate

2010

20

0 40

20 60

40 80

60

8

50 50

50 50

50 50

50 50

£ per hour

50

0 50

50

50 0

50

50

50

50

50

50

£ per hour

apply change apply to thechange data point markers to the data point markers default is square default is square select the markers, select the markers, open Appearance (Windows>Appearance) openpanel Appearance panel (Windows>Appearance) select “elipse” select “elipse”

TABLE 1-1

To create the shape for the first time: To charge-out create shape for the first time:category of Architectural Staff Average hourly rates, main select markers, select markers, Effect>Convert to shape>Ellipse > absolute>10pt Effect>Convert to shape>Ellipse > absolute>10pt

50

£ per hour

50

50

50

£ per hour

Lower quartile

MEDIAN

Upper quartile

Sole Principal

50

50

50

Partner & Director

50

50

50

ALL Principals, Partners, Directors

50

50

50

Associate

50

50

50

Senior Architect*

50

50

50

Architect**

50

50

50

Technologist

50

50

50

Architectural Assistant

50

50

50

Year out Student

50

50

50

* Senior Architect = with five years’ or more experience ** Architect = with under five years’ experience

5

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

TABLE 1-4 Average hourly charge-out rates, practice size 3 to 5 architectural staff Lower quartile 50

MEDIAN 50

Upper quartile 50

Associate

50

50

50

Senior Architect

50

50

50

Architect

50

50

50

Technologist

50

50

50

Architectural Assistant

50

50

50

Year out Student

50

50

50

£ per hour Principal, Partner, Director

TABLE 1-5 Average hourly charge-out rates, size 6 to 10 architectural staff Lower quartile 50

MEDIAN 50

Upper quartile 50

Associate

50

50

50

Senior Architect

50

50

50

Architect

50

50

50

Technologist

50

50

50

Architectural Assistant

50

50

50

Year out Student

50

50

50

£ per hour Principal, Partner, Director

TABLE 1-6 Average hourly charge-out rates, size 11 to 30 architectural staff Lower quartile 50

MEDIAN 50

Upper quartile 50

Associate

50

50

50

Senior Architect

50

50

50

Architect

50

50

50

Technologist

50

50

50

Architectural Assistant

50

50

50

Year out Student

50

50

50

£ per hour Principal, Partner, Director

TABLE 1-7 Average hourly charge-out rates, size over 30 architectural staff Lower quartile 50

MEDIAN 50

Upper quartile 50

Associate

50

50

50

Senior Architect

50

50

50

Architect

50

50

50

Technologist

50

50

50

Architectural Assistant

50

50

50

Year out Student

50

50

50

£ per hour Principal, Partner, Director

9

Architects Fees Minor Works 2022 edition

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

TABLE 1-8 Average hourly charge-out rates, London Lower quartile 50

MEDIAN 50

Upper quartile 50

Associate

50

50

50

Senior Architect

50

50

50

Architect

50

50

50

Technologist

50

50

50

Architectural Assistant

50

50

50

Year out Student

50

50

50

Lower quartile 50

MEDIAN 50

Upper quartile 50

Associate

50

50

50

Senior Architect

50

50

50

Architect

50

50

50

Technologist

50

50

50

Architectural Assistant

50

50

50

Year out Student

50

50

50

Lower quartile 50

MEDIAN 50

Upper quartile 50

Associate

50

50

50

Senior Architect

50

50

50

Architect

50

50

50

Technologist

50

50

50

Architectural Assistant

50

50

50

Year out Student

50

50

50

Lower quartile 50

MEDIAN 50

Upper quartile 50

Associate

50

50

50

Senior Architect

50

50

50

Architect

50

50

50

Technologist

50

50

50

Architectural Assistant

50

50

50

Year out Student

50

50

50

£ per hour Principal, Partner, Director

TABLE 1-9 Average hourly charge-out rates, South East £ per hour Principal, Partner, Director

TABLE 1-10 Average hourly charge-out rates, Midlands / East Anglia £ per hour Principal, Partner, Director

TABLE 1-11 Average hourly charge-out rates, North £ per hour Principal, Partner, Director

10

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

2

architects fees 2.1 Fees overview Architects’ fees are expressed throughout this report as a percentage of construction cost (contract value).

This includes jobs where fees are calculated at a flat rate or an hourly rate. As we have data for both the fees charged and the total building cost we have converted all fees to a percentage of building costs - standardising fees in this way is equally valid regardless of how the fee is actually charged.

The percentage fee charged varies, depending on the type of project, its complexity, and the type of contract.

Charts 2-1 and 2-2 show average fee lines for minor works.

Overall, the level of fees charged, expressed as a percentage of construction cost, decreases as construction cost increases. The charts on the right show, for example,

that the average percentage fee charged for a £100,000 traditional contract new build job ( per cent) is one percentage point higher than the fees charged for a £250,000 job ( per cent).

Reported fees charged for refurbishment (work to existing buildings) are higher, in percentage terms, than new build work. A £100,000 refurbishment job (Traditional) has an average fee of per cent compared with per cent for a similar sized new build contract.

Jobs carried out under the Traditional form of contract attract higher fees than for Design & Build contract jobs.

At £250,000 the differential is (new build) and (refurbishment) percentage points.

TABLE 2-1 Average Fees for Specimen Job Values Traditional and Design & Build Contracts ‘Fees’ relate to the full service provided by architects from Stage 1 to Stage 6 inclusive in the RIBA Plan of Work 2020. This includes preparation, concept design, developed design, technical design, construction and handover.

12

average fees (per cent of total construction cost) Construction cost

New Build

Refurbishment

Traditional

Design & Build

Traditional

Design & Build

£25,000

4.5

4.5

4.5

4.5

£50,000

4.5

4.5

4.5

4.5

£75,000

4.5

4.5

4.5

4.5

£100,000

4.5

4.5

4.5

4.5

£150,000

4.5

4.5

4.5

4.5

£200,000

4.5

4.5

4.5

4.5

£250,000

4.5

4.5

4.5

4.5

Architects Fees Minor Works 2022 edition

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

CHART 2-1 Average Fees, New Build Jobs Traditional and Design & Build Contracts Design & Build

Traditional Fee, per cent of total construction cost 12

9

6

3

0 0

25

50

75

100

125

150

175

200

225

200

225

250

Total construction cost £000

CHART 2-2 Average Fees Refurbishment Jobs Traditional and Design & Build Contracts Design & Build Traditional Fee, per cent of total construction cost 14

11

7

4

0 0

25

50

75

100

125

150

175

250

Total construction cost £000

13

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

2.3 How fees vary by region Average fees for minor works are higher in London and the South East than any other part of the UK. The South West of England also records above average fees. Fees in Wales and Northern Ireland are the lowest.

This year, the average fees multiplier is identical in London and the South East, the two parts of the UK which have the highest multiplier. The multiplier is close to 1.0, meaning average UK fees, in the South West, Midlands & East Anglia and the North.

CHART 2-5 How much fees in each region are above or below the overall average, selected job sizes New Build Traditional contract only Above average fees

Below average fees

£50,000

£100,000

£150,000

£250,000

London South East South West Midlands/ East Anglia North Wales Scotland Northern Ireland -3

-2

-1

0

1

2

-3

-2

-1

0

1

2

-3

-2

-1

0

1

2

-3

-2

-1

0

1

How many percentage points each region’s average fee varies from the UK average

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Architects Fees Minor Works 2022 edition

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LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

CHART 2-6 Regional Fees Multiplier UK average Multiplier equals 1.0 1.0

0.95

Lower

0.95

Higher

0.95 0.95 0.95

0.95 0.95

0.95

TABLE 2-3 Average Fees for Specimen Job Values Analysed by Region New Build, Traditional Contract Per cent fee

New Build, total construction cost Fees Multiplier £25,000 £50,000 £100,000 £150,000 £250,000

London

0.95

4.5

4.5

4.5

4.5

4.5

South East

0.95

4.5

4.5

4.5

4.5

4.5

South West

0.95

4.5

4.5

4.5

4.5

4.5

Midlands/East Anglia

0.95

4.5

4.5

4.5

4.5

4.5

North

0.95

4.5

4.5

4.5

4.5

4.5

Wales

0.95

4.5

4.5

4.5

4.5

4.5

Scotland

0.95

4.5

4.5

4.5

4.5

4.5

Northern Ireland

0.95

4.5

4.5

4.5

4.5

4.5

The Regional Fees Multiplier is calculated by comparing the mean average of the percentage fees calculated for typical values in each region, with the same average nationally. The national average figure becomes the Multiplier base of 1.0. Regional Multipliers over 1.0 imply the average percentage fees for these typical values in that region are higher than the UK average; and vice versa.

The Regional Fees Multiplier is based on the largest sector only, i.e. new build Traditional jobs.

The base for each region is all jobs reported. The spread by type of work, building sector, size and complexity can vary considerably between regions. The data has not been weighted to reflect these variations.

17

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

Architects Fees Minor Works 2022 edition

LE P M LY A S N O

4

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

market sectors All Private Housing 26 One-off house 27 Alteration 27 Renovation / repair 27 House extension 28 Barn conversion 28 Loft conversion 28 House conversion 29 Flats 29 Domestic garage 29

All Leisure 30 Hotel 31 Hotel extension 31 Cinema 31 Sports 32 Pub / bar 32 Restaurant 32 All Office Office fit-out Office extension

33 34 34

All Retail 35 Shops 36 Shop fit-out 36 Car Showroom 36

All Industrial 37 Warehouse 38 Factory extension 38

All Public Housing 39 Public Flats 40 Special Needs Housing 40 All Health 41 Hospital 42 GP surgery 42 Care Home 43 All Education 44 School 45 University buildings 45 Student Accommodation 46 Community Centre 46 Listed building 47 Church 47 Disabled Access 48 Mixed development 48 All Public Non-Housing 49

Statistical Basis

This section presents a detailed analysis of the fees data. A total of 41 sectors have been identified as suitable for analysis. Data is analysed by type of contract (traditional or design & build) and whether new build or refurbishment. The permutations presented reflect the number of jobs for which data is available.

The results presented here are derived from data relating to specific jobs gathered through the Architects Quarterly Workload Survey. Individual job data has been checked and any unusually high or low values have been excluded.

Each average fees line showing a specific sub-sector / contract type is based on a minimum number of ten jobs or, exceptionally, is based on fewer than ten only if the variance between jobs data and the ‘line of best fit’ is small. In general, sectors where the variance is high have been excluded.

The ‘line of best fit’ is calculated using a modified regression analysis. This line should be regarded as an indication of the pattern of fees charged for various sizes of jobs.

Leisure

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

All Leisure New Build

Design & Build

Traditional

Fee, per cent of total construction cost

12 10 8 6 4 2 0 0

50

100

150

200

250

Total construction cost £000

All Leisure Refurbishment

Design & Build

Traditional

Fee, per cent of total construction cost

12 10 8 6 4 2 0 0

50

100

150

200

250

Total construction cost £000

Leisure - All Work average fees (per cent of total construction cost) contract value

30

New Build

Refurbishment

Traditional

Design & Build

Traditional

Design & Build

£25,000

4.5

4.5

4.5

4.5

£50,000

4.5

4.5

4.5

4.5

£75,000

4.5

4.5

4.5

4.5

£100,000

4.5

4.5

4.5

4.5

£125,000

4.5

4.5

4.5

4.5

£150,000

4.5

4.5

4.5

4.5

£200,000 £250,000

4.5

4.5

4.5

4.5

4.5

4.5

4.5

4.5

Architects Fees Minor Works 2022 edition

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

Design & Build

Traditional

Fee, per cent of total construction cost

12 10 8 6

Leisure

Sports New Build

4 2 0 0

50

100

150

200

250

Total construction cost £000

Restaurant Alterations or Re-fit

Design & Build

Traditional

Fee, per cent of total construction cost

12 10 8 6 4 2 0 0

50

100

150

200

250

Total construction cost £000

Hotel Refurbishment

Design & Build

Traditional

Fee, per cent of total construction cost

12 10 8 6 4 2 0 0

50

100

150

200

250

Total construction cost £000

31

LE P M LY A S N O

This sample is intended for evaluation purposes only, to show the type of information covered and examples of the layout. Data has been amended these are NOT the published tables / charts.

Other publications from The Fees Bureau: Architects Fees Engineers Fees M&E Services Engineers Fees Quantity Surveyors Fees Architects Earnings Architects Practice Ownership Engineers Performance Architects Performance Architects Markets Construction Futures (quarterly) The Fees Bureau is a division of Mirza & Nacey Research Ltd.

Architects Fees Minor Works 2022 edition

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