ACRE & ANGLE
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Costs & fees 7 min read

Percent vs hourly vs fixed design fees

Compare the three common design fee models, when each fits, and how to avoid surprises in additional services.

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There is no universally “best” fee model — only better fits for how clear your scope is and how much change you expect.

Choose percent when

Construction cost is reasonably estimated and you want fees to scale with project ambition. Watch for circular incentives and undefined cost bases.

Choose fixed when

You have a clear brief and want cost certainty for design. Invest time up front defining exclusions.

Choose hourly when

You are exploring feasibility, interviewing options, or dealing with unknown existing conditions. Use not-to-exceed caps when possible.

Additional services to clarify

  • Extra meetings beyond an allowance
  • Major scope changes after approval
  • Extra agency resubmittals due to owner changes
  • Enhanced renderings and marketing materials
  • Extended construction administration

How to compare proposals

Normalize scope first, then price. A cheap proposal missing engineering or CA is not cheaper.

FAQ

Can I mix models?
Yes. Many agreements do by phase.
Should fee be the deciding factor?
Among qualified firms, process and communication matter as much as fee.
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