DOES THE ROI JUSTIFY DESIGN FEES?
Why visit a dentist when you can pull your own teeth
Return on investment is a valuable tool for helping to determine the feasibility and profitability of design investment.
No one likes spending money but there are times in life when professionals are required. Financial consultants, dentists, even lawyers. And why is that? We respect their training and expertise in their subject. BY engaging with professionals we also expect results. The saving of a tooth with filling as opposed to it being pulled, improvement in our financial situation and in terms of lawyers, well best we don’t go there.
The higher the return on investment, the more likely that investment is to be worthwhile.
Qualitative vs. Quantitative? Usability or let’s talk briefly about money. Great design adds value, full stop. We are going to reach a little further and mention Forrester who indicated that great design and design thinking provides an ROI of 85%. Take this as you will but it seems like a massive rebate on our fees. And remember whilst we are designing the home of your dreams, specifying windows, floors, roofs, insulation, structural works, billing only design hours, without an overhead profit margin, the main contractor is making over 20% and the electrical bill and plumbers will be at least double or quadruple ours.
So how is this relevant in terms of designing extensions or renovations? This relates to translation. When calculating ROI, we can justify this in any number of ways. The most relevant is: Knowledge, timeframe, precision and efficiency, the ability of an architect or designer to apply years of knowledge and training, turning a brief into an efficient and affordable solution, and at the same time using their design fees to improve efficiency and help reduce construction costs. Too many times have you sat in front of the television and watched home improvement programmes, with costs spiraling out of control, projects un-finished, homeowners forced to sell.
This shouldn’t happen, not ever.
Lets take a look at a simple roadmap, how we work.
1) We undertake a fee-free meeting with the client to ascertain their needs and clarify the budget
2) Before undertaking the project under contract, internally we undertake a feasibility study, check the viability of the project in terms of local and national policies and also ensure we can meet their needs when aligned with their budget. If we cant we say so, early on and justify our reasoning. At this point including our introductory meeting we have probably spent some 6 hours already working for you, fee-free. And all this excludes overheads such as our software costs, insurance, professional fees, and ongoing training obligations.
3) If we agree on the project viability, fees and you feel we are the right fit we begin work.
4) The surveying will take anywhere between 3 hours by hand or a day using laser technology. For hand surveys we charge by the hour, our 3D scanning partner charges on the project complexity but this will range from £1,500.00 upwards.
5) Translating the survey into CAD paves the way for the design phase. As multiple project run simultaneously, timescales can range from a few weeks to months and may include multiple iterations of drawings with numerous amendments.
We may recommend obtaining an outline works estimate from a Quantity Surveyor at this stage or later, who will provide a breakdown for works. Although this is an additional cost, it brings peace of mind, stabilised project vaibility and additional benefits later on as contractors will see you as both professional and knowlegeable, with a firm grip on the financials. It may also mean that they do not have to employ their own QS, reducing their costs, which would be passed back to you.
6) Once the final design has been agreed we produce all planning paperwork and once completed raise our invoice for all works to date.
7) Once the invoice has been paid, the application is submitted within 24 hours.
8) Our work beyond this point depends upon many factors including how you and your contractor wish to engage with the LABC or an independent buildings inspector. If the works are extensive we always recommend full plans submission, however many clients undertake their works under a buildings notice. We have a short article on the two options here.
We recommend full plans. Why? Well firstly the LABC has seen the construction methodology and approved this. Secondly, if going to tender, it provides contractors with all of the detail required to estimate your work, and allow you to make an informed decision. It also removes the option for them to work on a cost+ basis, something we don’t recommend to anyone unless there is a close working relationship and the contractor is well trusted.
Lastly, full plans allows us a designers, influence over the contractor and the required works. We get the opportunity to include efficiencies, break traditional working practices and this reduces construction costs passed to you, the client.
The checkpoints in place within this workflow allow us as designers and you as the client to understand implications of scope-creep, where an over-enthusiastic client adds more and more to the brief during the design phase.
But what about design fees you may ask? What do I have to pay? A good question and almost impossible to answer off-the-bat. What we can outline are past projects, those we feel successfully balanced input and output. Not exhaustive as scope, existing building fabric, and brief come into play.
£757.50 – Great Missenden, Grade II Listed Buildings Consent for a new roof
£1,056.50 – Hemel Hempstead, rear extension for a bungalow
£1,200.00 – Prestwood, oak framed garage with office above
£1,330.00 – Aylesbury, garage conversion
£1,845.00 – Holmer Green, rear extension
£2,026.50 – The Lee – rear extension
£2,093.50 – Hyde Heath, front extension and interior works
£2,275.00 – Great Missenden, rear extension
£4,180.00 – Penn Bottom, kitchen extension, infill extension and interior remodelling
£4,500.00 – Great Missenden, Planning in Principal
£8,500.00 – Farnham Royal, 5 bedroom renovation/conversion
£10,000.00 – Parslows Hillock, 5 bedroom conversion
£12,000.00 – The Vale, Grade II Listed Buildings Consent, extension and complete renovation
The fees above relate to projects some days, others months and relate to past projects, for real clients, but none of them should be used to help you budget your build.
Don’t believe us just yet? That’s OK. The Wise Tradesman website has an article on fees which puts us in good stead.
Likewise Níall Hedderman also details his fees, which are below.