How much should the architect charge in this case?
For a house addition project, the architect's fee is calculated based on 10% of the total construction cost. The contract administration part will be 20% of the total design service fee.
3 responsive bid has been received.
Contractor 1
Total cost: $180,000
Contractor 2
Total cost: $177,000
Contractor 3
Total cost: $173,000
After bidding has been completed, the owner chose contractor 2 and signed the contract. But right after the contract has been signed, the owner run into a major financial issue and decide to not move forward with the project any further. No construction was done. In this situation how much should the architect charge?
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This is a simple math question: 177,000x10%x80%= 14,160
Gang Chen, Author, AIA, LEED AP BD+C (GreenExamEducation.com)
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Let me explain:
The bidding was completed, $$, and the contractor was selected, so the design process was closed.
What they are asking is what the cost is for the architectural services if the construction and the construction administration were not commencement yet.
So:
10% of $177,000 = 17,700 -> for both: design and CA
20% - CA (not started)
80% - design -> $14,160
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