How To Calculate Your Fee for the CA Phase

A typical scenario for Architects and Consultants is to provide their fees at the beginning of a project. This is a challenging task to undertake and is a double-edged sword. Not only do you want your price to be reasonable so you can actually make a profit, but you also want the owner to accept it so you win the work and have them work with you in the future. 

At the stage where fees are provided, the drawings and specifications are not even close to being completed, nor is the scope well defined. The CA phase is one of the key areas where architects and consultants make zero profit. It’s not uncommon to hear “we’re almost out of hours for this project.” 

But what can be done?

The work has to be completed, and you’re expected to deliver what was agreed to years ago before construction even began.

Here are some key tips to help you calculate your CA fee:

1. Understand the Challenge of Fee Structuring

Presenting fees at the start of a project is complex due to incomplete drawings and undefined scope. Recognize this challenge as a normal part of the process, and approach it strategically.

2. Analyze Previous Project Data

To submit an accurate fee for the CA phase, analyze data from previous projects. While every Owner and Project is unique, reviewing the hours logged against the CA phase in past projects can provide valuable insights. One way of doing this is to look back and see the number of documents that were created on average throughout a project. Estimate how much time was spent on each document type, and multiply it by the number of documents. This, of course, is a very time-consuming task, but it can lead to more accurate pricing.

Using a CA project management tool like Part3 can help you collect and organize all the data you need to accurately price your next project. To see how these tools can streamline your workflow and ensure you're not leaving money on the table, check out our webinar on streamlining change and pricing workflows in construction admin where we dive into best practices for managing documentation and fees during the CA phase.

3. Document Review is Essential

Ensure the Owners understand the value Architects and Consultants bring during the construction phase. The amount of documentation that goes back and forth between the GC and Consultants is often in the hundreds or even thousands. Reviewing these documents is critical, as is making sure that all comments and discussions are implemented on-site to meet the design intent and quality standards.

4. Communicate Your Value

The design team acts as the eyes and ears on-site, ensuring the design intent is completed to the expected level of quality. Architects and Consultants know every inch of the drawings and have the background knowledge of what happened during design development, scope, and the creation of the Construction set. Communicate this expertise to the Owners to justify your fees.

5. Leverage Your Expertise

Your deep understanding of the project’s details is essential to its success. Architects and Consultants focus on delivering high-quality design, but it’s also important to make a profit to sustain your business. Leverage your expertise to ensure that the project stays on track and meets the necessary standards.

6. Pricing Comfort Level as a Benchmark

If you don’t feel uncomfortable presenting your price, you probably priced too low. Use this discomfort as a benchmark to reassess your fee structure and ensure it aligns with the value you’re providing.

Construction Admin can be Profitable

Navigating the complexities of fee structuring, ensuring thorough documentation, and effectively communicating your value are all crucial steps in making the construction administration phase not just a necessary task, but a profitable one.

By leveraging your expertise and embracing the challenges, you can turn what is often seen as a profit-draining phase into an opportunity to showcase the full extent of your skills. Remember, the key to success lies in careful planning, clear communication, and confident pricing.

👉 Book a demo with Part3 to learn how our CA software can help you justify your value and keep your projects on track so you never run out of hours again!

Note: This article, How To Calculate Your Fee for the CA Phase, was originally posted on the Part3 website.