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Design/Build - how to separate the costs

Janet D
19 days ago

We’re working with an architect who owns a design/build firm. He does offer design-only. We never stated or signed that we would use him for the whole thing, but there was definitely that ”feeling”. Now that we’re about to get the full set of plans, we told him that we’re going to bid it out. I’m hoping that his bid is competitive because I think his construction guy knows what he’s doing. It just seems financially irresponsible not to get some other eyes on the project. The scope is the overhaul of a 2700 sq ft ranch and will include an addition to bring it to just over 4000 sq ft. We’ve given him $15K and he has asked for 10K more. Is that reasonable for the design part?

Comments (9)

  • millworkman
    19 days ago

    Impossible to tell with the limited info given. What was the contract that was signed, as in what was the exact scope of his work? Typically if it is a design build you have agreed to the design AND the build.

  • Janet D
    Original Author
    19 days ago

    He does separate the two. The construction contract hasn’t been drafted yet. The original contract includes architectural and pre-construction services (documents, specifications, engineering services, evaluating existing systems, contacting utilities, permit apps and establishing budget for selections)

  • millworkman
    18 days ago

    Then you do not have a design-build contract in my mind, you have a design contract (plus the additional items you listed above) and that would be all you owe him for.

  • Janet D
    Original Author
    18 days ago

    Thank you for your reply. Are you in the know on pricing? I want to know what a reasonable price would be for the design work (incl those listed above).

  • millworkman
    18 days ago

    " Are you in the know on pricing? "


    No, I am not and it would be very much location dependent.

  • PRO
    Charles Ross Homes
    18 days ago

    Design costs will depend on the scope and the local market. For independent design services in our area, most architects bill by the hour for the design work or as a percentage of the cost of the remodeling project (no, I'm not making that up.) For percentages, it's typically 10% to 12% of the construction cost.

  • PRO
    Minardi
    18 days ago
    last modified: 18 days ago

    Design services are often discounted when folded into a design build model. It is not surprising that the design only price would increase substantially when asking about bidding it out. You are cutting off your nose to spite your face to use a design build firm for only design. If you wanted the traditional design, bid to outsiders, that is what you should have done from the beginning.

    The design fee would have been SUBSTANTIALLY higher for design, bid bid, and you would not have had the built in cost controls of the build knowledge. So there would have been many more revisions as the bids all came back outside your budget. Design with no builder input is always over most people's budgets. Here, you have had the builder input all along, without paying for the true design costs. That's a borderline unethical route. 10K is a bargain for those design services. BUT, you will leave a bad taste in his mouth to try to bid it out to others, and the build portion may not be on the table any longer if you do wish to go that route.

  • PRO
    Kimberli Saunders
    17 days ago
    last modified: 17 days ago

    The whole point of design build is the integration of the two, so that there are the fewest number of surprises for everyone. Deciding at the last minute to create an adversarial relationship out of a synergistic partnership is not going to pose well for getting those bids. You will also likely be subject to the "change order as profit" type of builders who put in the lowest of lowball bids, and rely on those changes to make them money. Which is NOT where you want to be with an architecturally designed home.


    25K for full architectural plans is a steal. Do not be surprised if another bill is presented should you not choose him to move forward with for the construction.