What is it Worth To You?

Typically architects discuss and price their services as a percentage of the cost of construction.  This method has two weaknesses.  First, there is little incentive for the architect to make a building cost less.  Second, it tempts owners into comparing architects solely on the basis of who will accept a smaller piece of the pie.  What owners really should be asking is, “Which architect can deliver the best value and what are their fees relative to the value delivered?”

How do building owner’s measure value?  It’s different for different types of projects. Below are some examples of how architects can deliver value and how to measure that value:

The Building Costs Less – A $5 per square foot savings on the construction cost translates into $100,000 of savings for a 20,000 square foot building. The value grows when you consider the savings in financing and carrying costs.

The Building Gets Done Quicker – In the example above, if an owner borrows $2,000,000 to build the building, and it takes a year to build, you could be paying as much as $10,000 per month in interest if you borrow the money at a 6% interest rate. If the architect and contractor work together to shave two months off the schedule, the savings could be up to $20,000.

The Building is Less Expensive to Operate and Maintain – Many owners track operation and maintenance costs per square foot of their building.  A 50,000 square foot classroom building at a university can cost $5.50 per square foot annually. A 10%, or $.50 per square foot savings, is $25,000 per year.  Over a 30 year period, that is three quarters of a million dollar in savings.

There are many more examples:

• Increased retail sales per square foot based on well-designed space
• Healthy buildings that decrease staff sick days and increase productivity
• Efficient layouts that reduce increase the ratio leasable space to non-leasable space

All of these benefits can be calculated and measured.  The next time you ask an architect for a fee, ask the architect to also propose how they will save you time and money.  Then compare the cost to the benefit. Better yet, ask Blue Ridge Architects how we can save you time and money.