Architect fees - I want to be fair

[Essexdigger]

Hi, we have completed a project and the final bills are coming in. We have paid our architect based in the RIBA scale and are happy to have done so. However in his final bill his percentage is based on the final build cost including the VAT, and I was under the impression that this was a net percentage not a gross one, but am not sure!! Also he has tacked on the price of the new kitchen in his percentage valuation, although he had nothing to do with the planning of that at all. Am I being unfair and petty or is he trying to pull a fast one? We are really happy with the final result, and were considering giving him a bonus, but no where near the amount that I think he is asking the extra for!
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[freddiemercurystwin]

A percentage fee is usually based on the final build cost, not sure what you mean re net or gross, but only the work he had a hand in. If the kitchen was nothing to do with him, he cannot charge for it. Send him a cheque to the value you you feel is appropriate writing that its a final settlement, he may complain but will never ever go legal on your ass! If he gets funny threaten to report him to the RIBA.

I don't like percentage fees, one or other of the parties is always gonna feel hard done by.

 

[Essexdigger]

Thanks for the reply. The question I have is whether the architects costs are a percentage of the build cost excluding vat, or a pecentage of the Build cost including Vat. This has been a huge project for us, so say the total build cost is 200k, the architects fee of 8% is an amount of 16k. If however it includes the vat, now at 20% it brings the builders cost to 240k, and the architects fee is now 19.2k - an extra £3000 if he is pulling a fast one! I hope this makes sense. He also wants to charge the same percentage for the cost of the kitchen which he had nothing to do with. And now he wants me to pay his final bill before the final bill has been seen by me from the builder. I think he wants to get in there in case there is no money left once the it comes in.....

 

[mointainwalker]

I have no experience of this so the following is just my opinion.

I cannot see that a fee based on a VAT-inclusive price is either fair or reasonable.

Firstly it makes no sense to say he should have a percentage of the gov's take, it has nothing to do with the actual building process.

Secondly - as has actually happened - the VAT rate could change during the build and that would also lead to complications.

I would agree that it also seems wrong to try and rake off a percentage for work he was not involved in ( kitchin), although it seems odd that he was not.

If you are paying by RIBA scale, is this question not clarified within the explanations ?

Since the payment is based on bills, I would not pay him until I had received final bills. Seems very unprofessional for him to ask you to do otherwise.

 

[jeds]

It really goes to the terms you agreed but architects fees are normally based on the total construction cost as certified by the architect of all works executed under the architect's direction and control excluding VAT, fees, and any adjustments made for liquidated damages.

So VAT is definitely out. The kitchen might be in if it's within the works certified by the architect.