The idea of architect billing for their services as a percentage of construction cost has, in the past, struck me as inherently unfair but increasingly, I am seeing the merit in that method of compensation.
In my own experience, when building hourly, this leaves the opportunity open to pick and choose from my services as one would a drafting service. I run into the situation where the design has a lot of refinement necessary to make it great and the client doesn’t want to spend the money on more design and more meetings. It becomes a matter of standards and, being a perfectionist, my standards are normally higher than my client’s. I look back on past built work and feel disappointment when I see things that could have been so much better or situations when I “gave away” time to make something right because the client was not willing to pay to do so. I think this is where architects who bill for their services as a percentage of construction cost often screw themselves. Being perfectionists, when billing a fixed fee, the longer we spend on a project “getting it right”, the lower the equivalent hourly rate becomes. Soon, the architect is down around $20 or $30 an hour which is completely unsustainable and leaves us trying to explain to our families on April 15th how we worked our asses off all year and only made $25k. But, at least, when billing based on a percentage of construction costs, the end result is likely to be a lot better.