Home Interiors - Clients Guide No 3 - The Fee Proposal - What to Look Out For!
A few days have now gone by since your first meeting with the Interior Designer and you should be receiving shortly a written Fee Proposal document from them - what's this all about? Simply put, it should tell you what they are going to do for you and how much it will cost.
Now there is not necessarily one way of doing this and every Designer will have their preferred method of presenting this information to their prospective Clients, but generally they will be outlining what is called their "scope of work" and this should directly relate to your individual and unique project.
This is likely to be broken down into progressing stages of work which will no doubt vary according to the particular requirements from each project:- Stage 1/ Concept Planning The first thing to be undertaken is an interior (and external if necessary) measured survey of the existing site to enable CAD computer drawings to be plotted.
It may also be necessary to have a further briefing meeting with you at this point so that it is fully understood all your requirements, likes and dislikes etc before progressing further.
Next will be the generation of some concept planning option(s) of the house which may include new build elements, exterior and internal wall alterations, re-location of areas and up-grading of kitchen, bathroom and en-suits etc.
This will be a fairly basic block planning exercise so that you can see the overall options available to you before moving on to the more detailed work; however initial layouts for kitchens and bathrooms may be shown as these have direct bearing on the location of services etc.
There will then be a presentation of the planning design work made to you in the form of prepared drawings demonstrating the alternative arrangements and options available to you.
The objective of this first presentation is to agree with you in principle the basic planning direction before progressing any further.
Stage 2/ Concept Design This stage will progress the project with the Designers full conceptual ideas for the project.
Each room/area will now be fully planned with fixed and flexible furniture, sanitary ware for bathrooms & en-suits and a full planned new kitchen design if required.
Three dimensional proposals will be drawn up for any structural or new build designs, staircase alterations, new integrated systems for services, lighting schemes and audio/visual entertainment systems if this is part of the clients brief.
Finishes, treatments and colours etc will be selected throughout including any new treatments and details of particular areas that needs to be addressed at this stage of the project.
A full visual presentation of the concept design work will be made to you in the form prepared drawings, plans, elevations, sections and fixed point computer or hand drawn visuals of all the areas, and samples of the finishes & colours etc to be used.
The objective of this second presentation is to agree with you the concept design direction for the project.
This stage enables you to get a real feel for how your project could finally look and allows changes to be made prior to moving on to the detailed work.
3/ Design Development This is an interim stage that may or may not be applicable for your particular project, but this is to take the Concept Design & Planning and to spend further time working the design through to give you further options and alternative to choose from.
More often than not the design will have been firmly established within the first two stages and any further development can be accommodated within Stage 4.
However, on very large projects this separate development stage can be very useful to have included.
4/ Detailed Design & Specification On agreement of the Concept Design & Planning it would then be the correct time for the Designer to prepare a Project Budget Cost Plan for the proposed works; this allows you to see where the costs are likely to be spent and to gives you an opportunity to tailor the scheme to best match your budget.
A draft Programme of Works would also be prepared at this stage; this being up-dated from time to time with Contractors & Suppliers as the project progresses.
For any proposed external work (new extensions etc) a Planning Application will be made by the Designer on your behalf to obtain Local Authority permission before advancing the project too far.
Planning Consent in the UK takes a minimum of eight weeks so this needs to be factored into the overall Programme of Works.
If the proposed scheme involves a Listed Building or it is within a Conservation Area it is likely to take much longer than the eight weeks to gain consent.
On your agreement of a Project Budget Cost Plan the Designer will then take the agreed concept design and work up the drawings to produce a full set of CAD working drawings, a written specification of work and schedules etc.
For a proposed design scheme requiring structural alterations or new build a Structural Engineer will need to be engaged via the Designer.
This is to prepare full structural drawings and calculations for Building Control approval.
In addition, for new build schemes calculations for Co 2 emissions (SAP Report) need to be obtained as is this also is a requirement for Building Control in the UK.
The Designer should now be in a position to make a Building Control Application on your behalf for the proposed works with all the relevant drawings and information generated.
All drawings, specification and scheduling information will now be complied by the Designer as a Tender Package and issued to Contractors & Suppliers for quotation.
Depending on the size of the project the Tender period can be between 2-4 weeks.
The Designer will then receive back the Contractors & Suppliers Tender Return and present these costs to you with their analyse and recommendations.
5/ Implementation.
On your agreement of the Contractors/Suppliers to be engaged for your project the Designer will then appoint them on your behalf under a JCT (UK only) or similar Building Contract; for smaller project just a simple letter of engagement would be used.
The Designer will also prepare a Contractors/Suppliers payment schedule and issue to all parties, activate and monitor payments throughout the duration of project.
The Project Budget Cost Plan will now be transformed into a Project Costing Plan (Real Costs) and be up-date as the project progresses.
The Designer will also prepare and issue all Variation Orders to Contractors/Suppliers and monitor these on the Cost Plan.
The Designer will coordinate all off and on site work with Contractors/Suppliers and follow their progress, organise and attend site and review meetings.
Hand-Over of site (practical completion) to you will be organized by the Designer and they will prepare a snagging/defects list and coordinate its undertaking by Contractors/Suppliers through to final completion.
Finally the Designer will oversee Contractors/Suppliers final accounts.
FEES The above is a typical (if there is such a thing) example of a Designers "Scope of Work" and against this they will be presenting their fees, which could be done in one of a number of ways; again this is subject to the size/type of your project.
Fees are basically arrived at by estimating how much time/cost is to be invested in a particular projects scope of work by the Designer.
Each Designer/Design Company will have their own time rate and this will be used as a benchmark when estimating.
Each stage will have an allowance of time allotted to it which will then give a time cost for the stage; this can then be shown as a fixed fee for that stage based on the scope of work outlined in the fee proposal.
What that means is the fee is fixed as long as the Designer is asked to stay within the defined scope of work, if you ask for anything different or extra then the fee will need to be reviewed.
The good thing about this method from a clients point of view is that they are only committing themselves to one stage at a time.
These fixed stage fees are normally payable in two hits; at the commencement and completion of each stage of the project.
Designers also use a Percentage Fees structure similar to that of Architects.
It is based on the Contact Value (Build Cost) of the project and is calculated on a sliding scale; the more the Contact Value the lower the Fee percentage and vice versa.
This arrangement can also be used in combination with the Fixed Fees system i.
e.
Stages 1, 2 and 3 are fixed and 4 & 5 are on the percentage arrangement.
It all depends on the individual circumstances of the project and what is the best method(s) to use, but this should be clearly stated in the Designers Fee Proposal document.
General Expenses are usually covered in the stated fees but there will likely be some exclusions such as third-party costs; Structural Engineers fees, Planning & Building Control fees and expenses, but these should be highlighted within the proposal document.
These costs will be charge as extra to the normal stage fee payments.
I hope this has given you some useful information into the subject of the Fee Proposals and you now know what to look for when one of these documents is presented to you.
On the basis that you are happy with your selection of a Designer and with their Fee Proposal it is now time to get the ball rolling and to make a start.
So look out for the four article in this Home Design Clients Guide series where I will be talking exactly about that - Making a Start!
Now there is not necessarily one way of doing this and every Designer will have their preferred method of presenting this information to their prospective Clients, but generally they will be outlining what is called their "scope of work" and this should directly relate to your individual and unique project.
This is likely to be broken down into progressing stages of work which will no doubt vary according to the particular requirements from each project:- Stage 1/ Concept Planning The first thing to be undertaken is an interior (and external if necessary) measured survey of the existing site to enable CAD computer drawings to be plotted.
It may also be necessary to have a further briefing meeting with you at this point so that it is fully understood all your requirements, likes and dislikes etc before progressing further.
Next will be the generation of some concept planning option(s) of the house which may include new build elements, exterior and internal wall alterations, re-location of areas and up-grading of kitchen, bathroom and en-suits etc.
This will be a fairly basic block planning exercise so that you can see the overall options available to you before moving on to the more detailed work; however initial layouts for kitchens and bathrooms may be shown as these have direct bearing on the location of services etc.
There will then be a presentation of the planning design work made to you in the form of prepared drawings demonstrating the alternative arrangements and options available to you.
The objective of this first presentation is to agree with you in principle the basic planning direction before progressing any further.
Stage 2/ Concept Design This stage will progress the project with the Designers full conceptual ideas for the project.
Each room/area will now be fully planned with fixed and flexible furniture, sanitary ware for bathrooms & en-suits and a full planned new kitchen design if required.
Three dimensional proposals will be drawn up for any structural or new build designs, staircase alterations, new integrated systems for services, lighting schemes and audio/visual entertainment systems if this is part of the clients brief.
Finishes, treatments and colours etc will be selected throughout including any new treatments and details of particular areas that needs to be addressed at this stage of the project.
A full visual presentation of the concept design work will be made to you in the form prepared drawings, plans, elevations, sections and fixed point computer or hand drawn visuals of all the areas, and samples of the finishes & colours etc to be used.
The objective of this second presentation is to agree with you the concept design direction for the project.
This stage enables you to get a real feel for how your project could finally look and allows changes to be made prior to moving on to the detailed work.
3/ Design Development This is an interim stage that may or may not be applicable for your particular project, but this is to take the Concept Design & Planning and to spend further time working the design through to give you further options and alternative to choose from.
More often than not the design will have been firmly established within the first two stages and any further development can be accommodated within Stage 4.
However, on very large projects this separate development stage can be very useful to have included.
4/ Detailed Design & Specification On agreement of the Concept Design & Planning it would then be the correct time for the Designer to prepare a Project Budget Cost Plan for the proposed works; this allows you to see where the costs are likely to be spent and to gives you an opportunity to tailor the scheme to best match your budget.
A draft Programme of Works would also be prepared at this stage; this being up-dated from time to time with Contractors & Suppliers as the project progresses.
For any proposed external work (new extensions etc) a Planning Application will be made by the Designer on your behalf to obtain Local Authority permission before advancing the project too far.
Planning Consent in the UK takes a minimum of eight weeks so this needs to be factored into the overall Programme of Works.
If the proposed scheme involves a Listed Building or it is within a Conservation Area it is likely to take much longer than the eight weeks to gain consent.
On your agreement of a Project Budget Cost Plan the Designer will then take the agreed concept design and work up the drawings to produce a full set of CAD working drawings, a written specification of work and schedules etc.
For a proposed design scheme requiring structural alterations or new build a Structural Engineer will need to be engaged via the Designer.
This is to prepare full structural drawings and calculations for Building Control approval.
In addition, for new build schemes calculations for Co 2 emissions (SAP Report) need to be obtained as is this also is a requirement for Building Control in the UK.
The Designer should now be in a position to make a Building Control Application on your behalf for the proposed works with all the relevant drawings and information generated.
All drawings, specification and scheduling information will now be complied by the Designer as a Tender Package and issued to Contractors & Suppliers for quotation.
Depending on the size of the project the Tender period can be between 2-4 weeks.
The Designer will then receive back the Contractors & Suppliers Tender Return and present these costs to you with their analyse and recommendations.
5/ Implementation.
On your agreement of the Contractors/Suppliers to be engaged for your project the Designer will then appoint them on your behalf under a JCT (UK only) or similar Building Contract; for smaller project just a simple letter of engagement would be used.
The Designer will also prepare a Contractors/Suppliers payment schedule and issue to all parties, activate and monitor payments throughout the duration of project.
The Project Budget Cost Plan will now be transformed into a Project Costing Plan (Real Costs) and be up-date as the project progresses.
The Designer will also prepare and issue all Variation Orders to Contractors/Suppliers and monitor these on the Cost Plan.
The Designer will coordinate all off and on site work with Contractors/Suppliers and follow their progress, organise and attend site and review meetings.
Hand-Over of site (practical completion) to you will be organized by the Designer and they will prepare a snagging/defects list and coordinate its undertaking by Contractors/Suppliers through to final completion.
Finally the Designer will oversee Contractors/Suppliers final accounts.
FEES The above is a typical (if there is such a thing) example of a Designers "Scope of Work" and against this they will be presenting their fees, which could be done in one of a number of ways; again this is subject to the size/type of your project.
Fees are basically arrived at by estimating how much time/cost is to be invested in a particular projects scope of work by the Designer.
Each Designer/Design Company will have their own time rate and this will be used as a benchmark when estimating.
Each stage will have an allowance of time allotted to it which will then give a time cost for the stage; this can then be shown as a fixed fee for that stage based on the scope of work outlined in the fee proposal.
What that means is the fee is fixed as long as the Designer is asked to stay within the defined scope of work, if you ask for anything different or extra then the fee will need to be reviewed.
The good thing about this method from a clients point of view is that they are only committing themselves to one stage at a time.
These fixed stage fees are normally payable in two hits; at the commencement and completion of each stage of the project.
Designers also use a Percentage Fees structure similar to that of Architects.
It is based on the Contact Value (Build Cost) of the project and is calculated on a sliding scale; the more the Contact Value the lower the Fee percentage and vice versa.
This arrangement can also be used in combination with the Fixed Fees system i.
e.
Stages 1, 2 and 3 are fixed and 4 & 5 are on the percentage arrangement.
It all depends on the individual circumstances of the project and what is the best method(s) to use, but this should be clearly stated in the Designers Fee Proposal document.
General Expenses are usually covered in the stated fees but there will likely be some exclusions such as third-party costs; Structural Engineers fees, Planning & Building Control fees and expenses, but these should be highlighted within the proposal document.
These costs will be charge as extra to the normal stage fee payments.
I hope this has given you some useful information into the subject of the Fee Proposals and you now know what to look for when one of these documents is presented to you.
On the basis that you are happy with your selection of a Designer and with their Fee Proposal it is now time to get the ball rolling and to make a start.
So look out for the four article in this Home Design Clients Guide series where I will be talking exactly about that - Making a Start!
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