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I am a professor of architecture and operate a
sole-practitioner architecture office in the Chicago suburbs. Most
of my projects are residential. I do between 8 and 12
projects a year, mostly additions to older homes and occasionally a
custom vacation house. I enjoy doing these small projects. As
a husband and father, working directly with families as my
clientele is very fulfilling. Helping clients expand and update
their homes with a one-of-a-kind architectural solution is both
challenging and rewarding. I prefer to work on numerous small
projects and believe these projects are a good fit with the demands
of being a full-time architecture professor. I also believe I
can teach better because I practice-and practice better because I
teach.
While I find practicing to be rewarding and fulfilling, I have
monthly overhead expenses that must be paid. These include rent,
telephone, professional liability insurance, office equipment, and
the occasional contract-drafting people I hire. For me to stay in
business and provide the services my clients value, it is
imperative that I collect fees in a consistent and timely manner.
How do I do that? I have found that written and verbal
communication is the key.
Communicate Before Taking a
Project
My telephone rings. A prospective client is inquiring
about my services. I ask a few standard key questions: Who? What?
Where? When? How much? Do you have a builder? Obtaining this data
will help me determine whether this a project I can do or even want
to do. I will, in turn, tell them about my expertise, how I run a
typical project, and various aspects of the design and construction
processes. Prospective clients will typically have some questions
of their own and inevitably will ask, "How much do you
charge?"
I try to avoid quoting a fee over the telephone. I explain to the
prospect that only after an initial meeting (typically at the
project site) can I gather enough information to generate a written
proposal. What I can offer at this point is to send them, by fax or
e-mail, a fact sheet about my office. The fact sheet explains the
fee in terms of a range based on a percentage of construction
costs. It also explains typical project duration. These, I
believe, are two of the biggest misconceptions that prospective
clients have about procuring architectural services. Even though I
do not charge my fees based on the "percentage" method, these
numbers can help prospective clients determine whether they can
afford my services. I ask prospective clients to review the
information and call me back to discuss it. I also explain to them
that for a consultation fee (a flat fee based on approximately two
hours of my time), I can meet with them at their site. I explain to
them that the consulting fee will be rolled into their project fee
if they hire me.
Obviously, not every project is meant to be, and inevitably some
people do not call me back. Many people in the residential sector
are shell-shocked at what architectural services cost. When given
the opportunity, I explain in greater depth what I do and how a
good design and well-detailed construction documents can actually
save them money. Over the years I have come to realize that most
people's expectations of what a set of drawings costs come from the
ads they see in home plan magazines. I explain to them that those
plans cost thousands of dollars to produce but are discounted
because they are sold in volume. I also explain that I am providing
a service—a one-of-a kind architectural experience—not
just a set of plans.
When a client calls back, I schedule a meeting to learn as much
about the client and project as possible so I can put together a
well-informed proposal. At this point, many potential clients are
anxious for a solution to their renovation dilemmas. It is most
important to explain to them that design is a process and that it
will take some time to generate intelligent schematic solutions for
a project. I explain to them the six phases of a project
(predesign, schematic, design development, construction documents,
bidding/contractor negotiating, and construction) and my role in
them. In addition to a portfolio, I bring a set of drawings
for a similar project and explain to them what goes into a set of
construction documents. Once again, this is an opportunity to
reiterate to prospective clients what they are paying for.
Communicate While Negotiating a Fee for
a Project
My typical proposal is usually three pages in length. Among
other things, it explains the following:
- The scope of the project as I understand
it
- Each phase of the project and the portion of
the total fee allocated to each phase. Although I charge a
stipulated sum (flat fee), I base my fee on my time expressed in
hours. This justifies my fee, and I have rarely had a client
dispute how much time it should take for me to do their
project.
- Additional project expenses for the owner
- Terms for additional services
- Stipulations for changes in project scope
- When I can begin their project
- Invoicing terms.
The proposal also asks for a retainer. This is
to be applied to the client's final payment or, in the case of
family and friends, their initial payment. Payment of a retainer
ensures that they are committed to the project and helps to keep
the cash flow going. The proposal explains that I will schedule the
project upon receipt of the retainer and that all projects are
scheduled on a first-come, first-served basis. It also explains
that final drawings will not be released until all balances are
paid in full. In a couple of unfortunate cases, this has given me
some leverage for clients who were slow or unwilling to pay.
Communicate During the Project
Invoicing is monthly, and payments are
due within 10 days of receipt. Architects have a natural tendency
to invoice at certain project milestones or at the end of each
phase. I believe it is essential, however, to invoice on a
consistent basis to meet monthly demands of my overhead and salary.
Clients sometimes expect to be billed at project milestones, too,
and I have explained to them how I run my business and that this is
what we had agreed to.
Clients who miss a payment get a friendly
telephone call. Perhaps they forgot. In most cases, the telephone
call will remind them of their obligation. It also provides an
opportunity to keep the clients informed of the progress of their
projects.
Communication is the building block of the architect-client
relationship. I want my clients to feel they are getting the
best value for their hard-earned dollars. Getting paid consistently
allows me to better provide quality services that will ensure this.
This is accomplished through effective written and verbal
communication prior to the establishment of a written agreement and
throughout the duration of the project.
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