Introduction
In Part 1, I explained the three most common ways architects charge for residential work: Hourly Fee, Fixed Fee (or Price Range), and Percentage of Construction Cost — along with how I personally use the first two in my own practice. To recap briefly: Hourly Fees charge for actual time spent, Fixed Fees (or Price Ranges) set a defined cost for an agreed scope, and Percentage of Construction Cost links fees to a percentage of the project’s total construction cost.
Now, let’s talk about what those fee structures mean in real numbers. This post shares typical industry ranges for each method, examples of when they’re used, and some notes on how my own approach fits into — and in some ways departs from — the norm.
1. Hourly Fees
Industry Overview:
In the New Hampshire region, hourly rates for residential architectural work typically range from $100 to over $200 per hour, depending on the firm’s size, overhead, and specialization. Higher rates often reflect larger firm structures, niche expertise, or high-demand markets.
When it’s used:
Hourly billing is most often applied to:
- Early feasibility studies or consulting sessions
- Very small projects with limited scope
- Work where the parameters are still unclear and flexibility is needed
Pros:
- Flexible and adaptable to evolving needs
- Allows you to hire an architect for only the time you require
- Useful when the outcome is uncertain and a larger commitment isn’t yet warranted
Considerations:
- Final cost is unpredictable unless you set a cap
- For complex projects, the total cost can be less predictable
- Requires a strong level of trust in the architect’s time management and transparency
My approach:
My hourly rate is at the lower end of the regional range, which reflects the efficiencies of a small, focused practice and the fact that I handle all design work personally rather than delegating to junior staff. This allows me to be highly responsive while keeping costs down. It also reflects my commitment to making early-stage design exploration more accessible to homeowners. I use hourly billing for feasibility studies and small projects. I keep careful records, provide regular updates, and — where possible — suggest a target number of hours to help clients budget for this phase.
2. Fixed Fee (or Price Range)
Industry Overview:
Many architects will quote a single fixed fee for a defined scope of services. For residential work in this region, that number can vary widely — from $6,000 to $20,000 for smaller additions or renovations, to $30,000–$80,000+ for custom homes — depending on size, complexity, and level of service.
When it’s used:
- New homes, renovations, or additions with a well-defined scope
- Projects where the client values a set budget for design services
- Situations where there is reasonable certainty about the process and deliverables
Pros:
- Predictable budgeting
- Easy to understand and track
- Encourages efficient progress within agreed parameters
Considerations:
- Less flexible if major changes arise
- Requires detailed scope definition up front
My approach:
I almost always establish a price range rather than a fixed number for medium and large projects. A range acknowledges that even new construction carries unknowns — and renovations even more so. From the start, I design with your construction budget in mind, drawing on my experience with current building costs to keep us realistic.
Before moving into detailed Construction Documents (CDs), I strongly recommend — and often insist — on obtaining preliminary pricing from qualified builders. This step allows us to fine-tune the design so it more closely matches your goals for both lifestyle and budget planning.
I also include fairness safeguards in my Owner/Architect Agreement:
- If work takes less time than expected, I only bill for the hours invested.
- If the scope changes and work will take longer, I pause to consult with you before proceeding, so we can decide together how best to move forward.
These measures ensure the agreement is a living, collaborative framework — not a rigid contract that benefits one side at the other’s expense, and they reflect my commitment to a fair and transparent process.
3. Percentage of Construction Cost
Industry Overview:
This is one of the most common ways architects bill for full-service projects, especially in larger firms. Fees are typically 7% to 15% of the total construction cost for residential work, with the percentage reflecting project complexity, service level, and geographic market.
When it’s used:
- Custom homes or major renovations
- Projects where the architect is involved from concept through construction
- Complex projects with multiple consultants and a high degree of coordination
Pros:
- Scales with the size and complexity of the project
- Aligns with full-service involvement and a high level of oversight
- Encourages continuous engagement from the architect throughout construction
Considerations:
- The final fee changes if construction costs rise
- Requires clear agreement on what counts toward “construction cost”
- Can create a perception — fair or not — that higher construction costs benefit the architect
My approach:
I do not use this model in my practice. My preference is to link fees directly to the scope of architectural work rather than the fluctuating costs of materials or labor.
This has two key advantages:
- Direct link between services and fees — You pay for the actual design work provided, not for unrelated increases in construction pricing.
- Avoidance of perceived conflicts — There’s no incentive, real or imagined, to specify more expensive materials or methods that could inflate my fee.
For me, a scope-based price range provides greater transparency, fairness, and alignment with your goals.
Closing Thoughts
While the dollar amounts and structures can vary, the right fee arrangement is the one that supports both your budget and your working relationship with your architect.
In my practice, I use hourly billing for smaller or exploratory projects and price ranges for medium and large projects — always with the aim of keeping the process clear, fair, and closely aligned with your goals. Whatever the method, confirming budget feasibility early — ideally with builder input — is essential to ensuring that your design and your resources remain in sync from start to finish.