Fee Proposal

Professional Studies | Scott Mckerrow: 1157985 | Assignment 2 | P a g e | 1

Inked Architects Limited was established and founded by Timothy Inks in 2001, resulting in a career spanning 20+ years in the New Zealand market. It is not the commitment of one person that creates a successful result. We are only successful due to the commitment and belief of our clients and our team. They are the ones that have cultivated Inked Architects. They are the ones that should be celebrated.

The Inked design team for this project would include the following personnel:

Timothy Ink B.Arch. (Hons) FNZIA - MANAGING DIRECTOR Principal and founder of Inked Architects. Tim has a passion for architectural site responsive designs. With 20+ years experience in the design industry he leads the design team to create innovative and beautiful spaces. Prior to the establishment of Inked, Tim has had invaluable and extensive experience with iconic New Zealand architects which has formed the core values of Inked Architects. Tim has specialist experience working with residential renovations especially heritage listings. This specialization has allowed him to focus on the preservation and character of a residence. A philosophy which has grown and has influenced not only residential projects but commercial, industrial and educational. Tim will be managing the administrative aspects of this project and collaborating with Scott to create an amazing space. Tim will be involved throughout the entirety of the project overseeing the design and documentation process.

The following are a few projects that could be of interest to you:

We are happy to work with the nominated sub-consultants that you have elected. This includes a Structural Engineer, Geotechnical Engineer and Landscape Designer.

If you have any further queries or require additional evidence of our design expertise please do not hesitate to call to organize a more personal meeting or you can visit our website where you can view our individual portfolios.

Two storey renovation

$400,000 Budget

20 week project completion

Award Winning Design (NZIA – Residential Award)

Single Storey Extension

$300,000 Budget

15 week project completion

Award Winning Design (NZIA – Residential Award)


The following is a documentation list of the core stages that will be involved in our architectural service relevant to the clients brief and project size.

1. Concept/ Predesign Phase 2. Preliminary design documentation for Resource Consent 3. Developed and Detailed design for Building Consent 4. Detail Design Documentation for Construction 5. Procurement 6. Contract Administration

1. CONCEPT/ PREDESIGN PHASE

After the initial consultation, agreeing on a design brief and an indicative budget we would organise a conceptual set of drawings which would include the following:

C.T (Boundaries identified)

Sketch Floor & Site plans

Freehand Sketches

3D Perspectives

L.I.M

Defined Project Brief

A landscape sketch plan from the elected Landscape designer may also be provided to coincide with the conceptual phase

Contractual Agreements and Preliminary Fee Indications

2. PRELIMINARY DESIGN/ RESOURCE CONSENT

The concept design is then developed further with a higher level of detail eventually reaching to the required level of documentation for Resource Consent (RC). This would include the following:

Scaled CAD format Site plans, Floor plans, Elevations and Sections indicating all relevant planning information required for RC (Existing and Proposed)

Project information memorandum (Highlights required planning issues)

A planning report (Organised by us or a nominated planning professional)

Resource Consent Application Forms

A project estimate (Organised by ourselves or a Quantity Surveyor)

3. DEVELOPED & DETAILED DESIGN/ BUILDING CONSENT

The resource consent can still be processing as we move onto this next phase. Once we have agreed and finalised a design we can proceed with a full set of working drawings and specifications for the building consent submission. This would include the altered drawings from Stage 2 and the following:

Building Consent Application and Checklist (Includes Certificate of Title and PIM)

Site, Drainage, Floor, Foundation, Roof, Bracing, Electrical and Lighting Plans

Elevations, Cross Sections, Schematics, Architectural & Civil Details

Architectural Specifications

Geotechnical Report, Calcs. and Producer Statement (By Elected Consultant)

Structural Plans, Details, Calcs. and Producer Statement (By Elected Consultant)

After building consent submission, it would be a good time to confirm the project cost estimated in Stage 2.


4. DETAILED DESIGN DOCUMENTATION FOR CONSTRUCTION

In addition to the drawings prepared at stage 3 we would include the following:

Interior Elevations, Joinery, Cabinetry and Finishes Schedules

Exterior Joinery and Finishes Schedule

At the completion of this stage you will receive a full set of architectural plans, specifications and the other consultants‟ plans for the procurement of the construction phase.

5. PROCURMENT

Establishing contractual matters for the purpose of construction and tendering.

Documentation from Stage 3 and 4

Programme Schedule and Scope of works

Registration of interest from Head Contractors (We can suggest our recommended contractors for this size project or you can nominate)

Contract Documents (Head Contractor and Client)

Tender Documents (These will be sent to the head contractor who will distribute them to elected subcontractors)

6. CONTRACT ADMINISTRATION

If requested, this phase involves the contractual and financial administration of the above project. This would include regular site visits and contact with the contractor to aid in construction resolutions. Documentation for this phase would include:

As builts

Inspection and Site minutes

Health and Safety

Extension of time records

Site instructions

Variations

Notice to contractors

Record of Conversations

Contractor Invoices

Payment schedules

Practical Completion Certificate

Defects Notices

Code of Compliance

Warranties and Guarantees

Other administrative phases will need to be considered also post construction completion. This includes the Defects liability period and Post Construction phase where all accounts will be finalised, feedback and debriefing given.


CONDITIONS OF ENGAGEMENT

As part of our General Terms and Conditions, Inked Architects Limited have appointed the NZIA Agreement for Architect’s Services, AAS 2011 as the nominated contractual agreement between the client and the architect.

SCOPE OF WORK

As at the time of this agreement, the scope of the project was as follows: 1

The demolition of an existing freestanding double garage

New double garage as an extension to existing residence

Loft over new double garage

The loft will house a new kitchenette, small bathroom with toilet, wash hand basin and shower

A more detailed scope of work will be created at the procurement stage for tender.

SCOPE OF SERVICES

To provide a full architectural service for an extension to their existing house.

Refer to „Schedule D‟ of the NZIA AAS 2011 for a full breakdown of the Architect‟s services provided. Exclusions/ Additions will be stated within our fee proposal.

FEES

The fee percentage for this project is 12.5% of the total construction cost. Breakdown is as follows:

1. Concept/ Predesign Phase 10% 2. Preliminary design documentation for Resource Consent 15% 3. Developed and Detailed design for Building Consent 45% 4. Detail Design Documentation for Construction 15% 5. Procurement 5% 6. Contract Administration 10%

For this relatively small residential extension we have derived a percentage fee from the NZIA Guide to Architects Charges which if required can be found on our website. This fee is calculated and classified according to the complexity of the project. In this case it is the highest complexity, Class 5. This classification can be found on page 2 of this guide.

These percentages exclude any unforeseen costs and disbursements such as printing, photographs, couriers, travel, communications, credit checks and rental equipment will be charged. Refer to „Schedule G‟ NZIA AAS 2011 for a schedule of expenses.

A provisional lump sum will be included for any additional negotiations with the territorial authority. If this sum is exceeded then a hourly rate will apply. These figures will be explicitly stated in the budget.

1 The NZIA Agreement for Architects Services, AAS 2011, Schedule C – Project, 1.Scope. New Zealand Institute of Architects


Fees and expenses will be billed at the completion of each stage or at the end of each month with payment being due 14 days following the invoice. 2

The above percentages exclude all other consultants works, including but not limited to, Geotechnical Engineers, Landscape Designers, Structural Engineers, Planners, Quantity Surveyors and the like.

This letter is to be read in conjunction with the NZIA AAS 2011 Rules document which outlines both parties obligations. This document and all other documents highlighted can be found on our website.

Once again thank you for this opportunity and if you have any questions do not hesitate to call.

Yours Sincerely,

Timothy Inks

MANAGING DIRECTOR

Inked Architects Limited

2 Crosson Clarke Carnachan Architects example Fee Letter Proforma 2011


The construction budget is indicative only and could vary by the time of completion due to project variations and additions. This sum could reduce or increase depending on the circumstances. Additionally, this would affect the fees indicated by consultants charging out at a percentage rate.

Construction Budget (Exc. GST) $285,000.00

Architects Fee Total (Exc. GST) $42,750.00

12.5% of Construction Budget $35,625.00

Provisional lump sum for negotiations w/ council $4000.00

Sub Consultants Fees Total (Exc. GST) $11,330.00

Structural Engineer @ 1.8% of CB $5130.00

Geotechnical Engineer $6200.00

Provisional Consultants Fees Total (Exc. GST) $8500.00

Planner $5000.00

Quantity Surveyor $2000.00

Topographical Survey $1500.00

Landscaping Fees Total (Exc. GST) $30,000.00

Resource and Building Consent Fees (Exc. GST) $4250.00

Sub-Total (Excluding GST) $378,705.00

Add GST @ 15% $56,806.00(RND. to $)

TOTAL BUDGET (Including GST) $435,511.00

I have allowed provisional sums for additional consultants fees if deemed necessary to complete the project. If they are not required for this project it will be deducted from the stated total budget sum.

Any additional work/ negotiations with the council that exceeds the allowed provisional amount will be charged out at an hourly rate of $133.65/HR.


5A. PROJECT GROSS FEE INCOME CALCULATIONS

1. The Construction Cost (CC) CC $285,000.00

2. Quoted professional fee (%) F% 12.5%

3. Gross fee income (CC x F%=GF) GF $35,625.00

5B. HOURLY CHARGE OUT RATE (COR) CALCULATIONS

1. Hours available to work per year (221d x 9hrs) H 1989 hours

2. Annual Salary S $85,000.00

3. Base Rate (S/H=BR) BR $42.74/HR

4. Overhead Factor3 OH F 1.5017

5. Cost Rate (BR+(BR x OH F) = CR) CR $106.92

6. Profit Component per $ (P%+1=PF) P=0.25 PF 1.25

7. Charge Out Rate (CR x PF=COR) 106.92x1.25 COR $133.65

8. Gross Fee Income GF $35,625.00

9. Time Available within Fee (GF/COR=TF) TF 266.55 hours

5C. ACTUAL TIME REQUIRED TO DO THE PROJECT

1. Number of Plans from Deliverables N 24

2. Hours per plan at Detailed Design Stage (DDS) DDH 4 hours

3. Percentage allowed for Detailed Design Stage DD% 45%

4. Hours per plan for the entire project (DDH/DD%x100) TD 8.88 hours

5. Hours required to complete all stages (TDxN=TT) TT 213.12 hours

6. Time allowed/ Actual Time (5B-9 – 5C-6) DIF 53.43 hours

5C-6. TIME DIFFERENCE EXPLANATION

There is a difference of 53.43 hours between the actual time required and the provisional time budgeted. There are a number of variations that could generate this difference. The following are a selection of variations and factors that could have influenced the equated numbers:

The amount of time per plan at the detailed design stage. If I had allowed more time then the difference would reduce

The number of plans. This is an estimate number as the amount of architectural details required could vary and any additional plans that the council require could increase this figure. Or if I have overestimated then this figure would decrease

The plan count doesn‟t allow for administration documentation and specifications. The time difference could be appropriate for this situation.

The time difference could be a positive result and seen as a margin or contingency allowance for variations from the client, contractor, council or other unforeseen factors that increase the work load.

3 Overhead Factor taken from “Jasper Spinlove and Associates Ltd example of calculating a charge out rate, Feb. 1995”


The NZIA Agreement for Architects Services, AAS 2011. New Zealand Institute of Architects.

Jasper Spinlove and Associates Ltd example of calculating a charge out rate, Feb. 1995.

Crosson Clarke Carnachan Architects example Fee Letter Proforma 2011

Unitec: Professional Studies Lecture Notes. Moodle. 2011

NZIA Practice Note: Initial Client Meeting. PN 5.101U. Published 1995. New Zealand Institute of Architects

NZIA Guide to Architects Charges. December 2006. New Zealand Institute of Architects.

Images displayed on page 1 are competition entries design by Scott Mckerrow while working at ICR Consulting. 2011.