LAND TO LEGACY · EPISODE 68
Why Architects Cost So Much
What does a $47,000 architectural fee actually buy?
What does a $47,000 architectural fee actually buy? Tim Derrington breaks down a proposal for a 17,000-square-foot gym in an existing strip center: $7,000 for design and code-compliance work, and $40,000 for coordination and documentation. The example explains why the initial concept can account for a small part of the work required to deliver a buildable project.
Tim joins Eugene Gershman to examine what owners should expect from an architect, how to evaluate a design team's construction knowledge, and why a convincing rendering leaves important questions unanswered. They discuss the responsibilities behind a complete set of plans, the limits of early cost estimates, and the money owners must spend to reduce uncertainty before construction.
The conversation moves through real project problems, including an engineering handoff that delayed construction and unexpected conditions beneath an existing building. Tim and Eugene examine how architects, civil engineers, structural engineers, and builders need to coordinate, and why the professional who leads the team should depend on the project.
They also discuss defining the development program before design, balancing function with the experience of a space, and the benefits and frustrations of building information modeling. Tim explains where he currently finds AI useful and closes with questions owners can ask to compare architectural proposals, understand exclusions, and choose a team they can trust.
MAIN POINTS
What to take back to your team.
- 01
Ask what the fee includes
Tim’s gym proposal separates initial design and code-compliance work from consultant coordination and documentation. Use that distinction to ask which responsibilities each proposal covers.
- 02
Check how the architect works with builders
Speak with previous clients and contractors about the quality of the drawings, construction details, and coordination. A portfolio alone leaves those questions unanswered.
- 03
Budget for the work that reduces uncertainty
Early concepts support preliminary estimates. Tim explains why developing the design and engineering takes money before owners can obtain a more informed construction price.
- 04
Define the development program early
Eugene describes assessing land-use constraints, costs, market demand, and a potential exit, then defining the program before commissioning the architectural design.
- 05
Match team leadership to the project
The priorities of a warehouse and a destination retail project differ. Tim and Eugene discuss coordinating the relevant disciplines and choosing the lead around the work required.
- 06
Treat AI output as material to check
Tim discusses AI as a starting point for some concepts and a tool for reviewing text and comparing code research. He describes functional problems that still need professional attention.
QUESTIONS FOR YOUR TEAM
Questions raised by the episode.
Why can an architectural fee be much higher than the cost of drawing the initial concept?
Tim describes substantial work after the concept: refining the design, coordinating engineers, responding to the city, and producing accurate documents. His $47,000 gym proposal allocated $7,000 to design and code-compliance work and $40,000 to coordination and documentation. Those figures apply to the proposed gym discussed.
How should an owner compare architectural proposals?
Ask which services, revisions, permitting tasks, consultant coordination, and details are included. Tim recommends investigating a much lower fee to understand what work may be excluded, then considering the working relationship alongside the cost.
Can construction cost be established before the design is developed?
The conversation distinguishes a preliminary estimate from pricing based on a developed design and supporting documents. Tim explains that owners generally have to fund some design and engineering work to reduce the uncertainty in early estimates.
Should the architect always lead the project team?
Tim says the answer depends on the project. A warehouse may be driven by civil and structural requirements, while a place intended to attract people puts more emphasis on architectural experience. Eugene describes defining the development program through feasibility work before the design team develops it.
CHAPTERS
Jump to a section.
00:00Episode previewA preview of the conversation on architectural fees, hidden building conditions, verifying design details, and spending money to understand a project's feasibility.
00:58Land to Legacy introThe Land to Legacy introduction.
01:09Meet Tim DerringtonEugene introduces Tim and the questions developers bring to the relationship between architectural design, construction, and cost.
01:35What makes a good architectTim explains the combination of vision, coordination, and construction knowledge an owner should expect from an architectural team.
05:21Why early construction estimates remain uncertainA concept can support a rough budget, but the materials, assemblies, and documentation needed for firmer pricing take time and money to develop.
08:38Check an architect’s work with builders and clientsTim recommends speaking with previous clients and builders to learn how an architect's drawings and working relationships perform during construction.
09:55Knowing how the design will be builtTim describes how his team researches assemblies, checks details with specialists, and tests whether a design can be built before treating it as resolved.
14:01Construction mistakes and hidden site conditionsProject stories show how coordination failures and unexpected existing conditions can interrupt construction. Tim also discusses taking responsibility for mistakes and bringing design disciplines together early.
25:23Which professional should lead the teamThe appropriate lead depends on the building and its purpose. Eugene and Tim compare the priorities of architects, civil engineers, and structural engineers.
28:22Define feasibility and the program before designEugene explains how land-use research, a preliminary budget, market demand, and a potential exit inform the program given to the architect.
30:06Designing for function and experienceThe discussion moves beyond attractive renderings to how spaces work for people, what problem a design solves, and how function and experience influence each other.
36:46Architectural software and documentationTim describes the studio's progression from early sketches to Archicad and three-dimensional modeling, including the time required to manage and revise detailed building information.
41:06Where AI helps in Tim’s practiceTim discusses early concepts, text and contract review, and checking his own code research. Eugene shares an example of using AI for preliminary site-planning options.
45:19What an architect’s fee actually coversA proposed $47,000 fee for a 17,000-square-foot gym illustrates the difference between initial design work and the larger coordination and documentation effort.
49:11Compare scope before comparing feesTim recommends asking what each proposal includes, who handles permitting and consultant coordination, and how revisions and design development will be managed.
51:54Tim’s practice and closing thanksTim describes Derrington Building Studio's commercial work across Texas and shares where listeners can learn more and contact the studio.
52:39Land to Legacy outroThe Land to Legacy closing.
CONTACT INFORMATION
Links from the conversation.
Connect with Tim Derrington
Eugene Gershman and Land to Legacy
EPISODE COMPANION
Lessons from Why Architects Cost So Much
Six practical lessons from the conversation, each with an episode example and what it means for your project.
DEVELOPMENT RESOURCE
Considering development?
Considering development? Before you spend on design, use GIS's free Feasibility Study Checklist to organize the basic property facts, identify questions that still need answers, and prepare for a more useful conversation with your development team.
Get the free GIS Feasibility Study ChecklistExamples reflect the projects and experiences discussed. Costs, professional scope, and project requirements vary.
Next episode guide: Protect What You Build