PHILIP STEJSKAL ARCHITECTURE
Q3: What’s the difference between the construction budget, architect's fees, and total project cost?
In general, the term ‘Construction Budget’ encompasses the cost of construction, inclusive of the builder’s margin, and a construction contingency sum to cover unforeseen costs.
Many clients think of this as the total outlay for their project. However, ‘Construction Budget’ does not account for fees and charges leading up to the point of construction. These include council costs and professional fees (eg: architectural, engineering).
The latter fees and charges are typically calculated as a percentage of the total construction cost, and all of these various fees and costs are added together to arrive at the ‘Total Project Cost’.
Many clients think of this as the total outlay for their project. However, ‘Construction Budget’ does not account for fees and charges leading up to the point of construction. These include council costs and professional fees (eg: architectural, engineering).
The latter fees and charges are typically calculated as a percentage of the total construction cost, and all of these various fees and costs are added together to arrive at the ‘Total Project Cost’.