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Lump Sum or Fixed Fee

An amount negotiated with the Client for professional services that can be sufficiently defined at the outset of the project. This arrangement is only suitable if the scope of the project, the schedule for design and approvals, and the construction schedule and other variables can be determined with reasonable accuracy by the Architect.

Time Basis Fee

Fees which are charged on an agreed-to hourly or daily (per diem) rate. This method of compensation is useful when the services are difficult to determine in advance or they are interim in nature and often short in duration.

Percentage-Based Fee

A method of compensation which links the fee for the Architect’s services to a percentage of the construction cost of the project. The percentage will vary depending on the type of building, the construction value, and the type of construction contract, and of course, the other variables (fee adjustments).

Source: The Royal Architectural Institute of Canada, ‘A Guide to Determining Appropriate Fees for the Services of an Architect’, 2009.