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When calculating a percentage-based fee, what should the architect use and what level of service does this fee include?

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Final answer:

An architect calculates their percentage-based fee using the total cost of construction or project value. This fee typically covers services from design to construction administration. Extra services may incur additional fees, and advice to someone about fees should consider project complexity.

Step-by-step explanation:

Calculating Architects' Percentage-Based Fee When calculating a percentage-based fee, an architect typically references the total cost of construction or the project's total value to determine their compensation. The architect uses this percentage as a base to cover standard services which may include schematic design, design development, construction documents, bidding or negotiation, and construction administration. The level of service included in this fee often encompasses the core architectural services required to take a project from conception through to completion.

For instance, if an architect's fee is set at 10% of the total cost of construction and the project is valued at $500,000, the architect's fee would be $50,000. This fee structure assumes the architect is providing a full scope of services. Depending on the agreement between the architect and the client, additional services such as feasibility studies, multiple design concepts, extensive modifications, or project management beyond the standard scope may require additional fees.

When advising Sam, it would be critical to assess the complexity and specific needs of the project to determine if the standard services covered by the percentage-based fee are sufficient or if additional services and fees need to be discussed with the architect.

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