When comparing proposals, preparing financing, or deciding whether a commercial project can move forward, owners need to know what the architect’s fee covers. Construction cost is only part of the picture. Factors such as project type, size, design scope, existing conditions, delivery method, consultant needs, schedule, and construction-phase involvement can all affect the proposal.
This October 2026 report draws on eight public sources: AIA/Deltek fee-practice survey summaries from March 2024 and January 2026; AIA guidance on fee calculation and services, dated November 2023–August 2024; AIA’s current public guide to architect fee models; and Washington State’s 2027–2029 A/E fee guidelines, updated June 2026. The surveys cover March 2024 and January 2026. The Washington phase schedule covers 2027–2029 public-project budgeting. We compiled these secondary sources; we did not conduct a new survey or audit Baron Design’s fees. The AIA summaries neither identify a commercial-only respondent group nor publish respondent counts for the fee questions. Their percentages describe responding architecture firm leaders, not all commercial projects. Washington’s schedule applies to state agency public works, not private-market rates.
Architect Fee Methods Reported by Firms: 2024 and 2026
The AIA/Deltek survey summaries report which fee methods responding firm leaders said their firms used. Some figures measure regular use; others measure any use. Read each value with its stated frequency, since the rows are not all directly comparable.
Architect fee methods reported by responding firm leaders: 2024 and 2026
| Fee method | March 2024 report | January 2026 report | How to read the measure |
|---|---|---|---|
| Stipulated sum (fixed fee) | 92% reported use; 70% regularly | 73% regularly; overall use not stated | Regular use in the two reports is not the same as overall use. |
| Professional fee plus reimbursable expenses | 80% reported use; 60% regularly | 61% regularly; overall use not stated | Reimbursables are billed in addition to the professional fee under the agreed terms. |
| Hourly rate, with or without an agreed maximum | 93% reported use; 42% regularly and 50% occasionally (source-reported rounded shares) | A use rate was not stated in the published summary | The 2026 summary’s separate profitability result is not an adoption rate. |
| Percentage of construction cost | No comparable rate stated in the summary | 24% regularly; 32% occasionally | Usage frequency, not a percentage fee charged to a client. |
| Percentage of construction cost, not to exceed a fixed amount | 28% reported use | 27% reported use | The reports do not break this “any use” figure into regular and occasional use. |
| Fee per square foot | 30% reported use | 31% reported use | The reports do not state a fee-per-square-foot dollar rate. |
These percentages describe the methods responding firm leaders said their firms used. They do not measure the share of projects, fee revenue, or a typical client contract. Firms may use multiple methods, so the categories do not form a single 100% allocation. Neither summary publishes respondent counts or margins of error for these questions. Small differences between the two snapshots should not be read as a meaningful trend.
Percentage-Based Architect Fee Guidance: 2026
The percentage ranges in AIA’s public guide are examples, not survey-derived national averages. Its new-construction and remodel examples are not identified as commercial-only. The design-bid-build example applies specifically to larger commercial projects and uses a different fee base. Keep these examples separate rather than combining them into one benchmark.
| Project context | Published range | Fee basis stated by AIA | Important limitation |
|---|---|---|---|
| New construction | 8–15% | Construction costs | AIA describes this as a typical range; the page does not state a survey sample or calculation method. |
| Remodels | 15–20% | Construction costs | AIA notes that experience, complexity, and geography affect the fee. |
| Design-bid-build for larger commercial architecture projects | 5–20% | Overall project budget | This is a different denominator from construction cost and a broad design-service range. |
To understand a percentage fee, first check how the agreement defines the base, such as the owner’s budget or the cost of the work. Then check how it handles changes. AIA’s discussion of B101-2017 describes using the owner’s budget for progress calculations and clarifying how later budget changes affect compensation. The public guidance reviewed here does not establish a standard hourly or per-square-foot dollar rate for commercial projects.
A/E Basic-Services Fee Allocation by Project Phase: Washington 2027–2029
Washington State’s Office of Financial Management publishes an approximate allocation of A/E basic-services fees by phase for budgeting state public works building projects. This guide is for public owners. It does not recommend a split for every private commercial contract.
Washington State A/E basic-services fee allocation by phase: 2027–2029
| Project phase | Share of basic-services fee |
|---|---|
| Schematic design | 18% |
| Design development | 20% |
| Construction documents | 31% |
| Bidding | 2% |
| Construction | 27% |
| Project closeout | 2% |
The listed shares total 100%. OFM’s schedule covers normal architectural and engineering services, with approximate allocations for Washington public works. Negotiated fees may vary with project circumstances. The guidelines apply to state agency budget requests and set a maximum budgeting reference for specified public projects. They do not set private-sector prices. Construction-phase administration is also contract-dependent: AIA notes that the owner-architect agreement defines the level of architect services during construction.
Architect Fee Payment Schedules: AIA Guidance (2024)
The fee basis tells you how compensation is calculated. The payment schedule tells you when invoices come due. AIA describes several payment arrangements that can be used with different fee structures.
Architect fee payment schedules described by AIA: 2024
| Payment approach | Invoice trigger | Contract details to clarify |
|---|---|---|
| Retainer | Paid at the start of the project and credited toward the final project payment | Amount, when it is due, and how it is applied |
| Progress billing | As agreed portions of active phases are completed; AIA notes billing is often monthly or every four weeks | How progress is measured and how phase or task values are assigned |
| Hourly billing | At agreed intervals, based on hours worked | Rates, time records, and any not-to-exceed limit or approval requirement |
| Monthly fee schedule | At predetermined monthly amounts based on phase fees and planned duration | What happens if the schedule or phase duration changes |
| Milestone billing | At milestones defined in the agreement, such as phase completion or acceptance | Exact milestone, acceptance criteria, and invoice due date |
| Advance payment | Before the next segment of services begins | Advance amount, payment timing, and which services it covers |
AIA describes these as alternative arrangements. They are not a required sequence, and no single arrangement applies to every project. The agreement should define the compensation basis and invoice triggers.
What to Compare in an Architect’s Fee Proposal
Check that each proposal uses the same scope and fee basis before comparing totals. AIA recommends defining the services, effort, risks, and any additional services before setting compensation. Its guidance also describes retainers, hourly billing, progress-based invoicing, monthly fee schedules, and milestone payments.
Fee basis: fixed sum, hourly rate, percentage of construction cost or budget, unit cost, or a combination.
Included phases and services: confirm design, consultant coordination, bidding, permitting support, and construction-phase involvement rather than assuming every agreement includes them.
Assumptions and exclusions: identify the construction-cost base, reimbursable expenses, consultant allowances, revision limits, and conditions that trigger additional services.
Payment terms: check invoice timing, retainers, milestone definitions, and any not-to-exceed limit or approval requirement for work beyond it.
Project fit: compare relevant project experience and scope details alongside the fee; review examples in the Baron Design project portfolio, while remembering that a portfolio does not replace a written scope.
Requesting a Copy of This Report
For a PDF copy of this report, contact Baron Design & Associates.
Sources
1. AIA/Deltek. “ABI March 2024: Architecture firm billings retreat further in March.” April 24, 2024. https://www.aia.org/resource-center/abi-march-2024-architecture-firm-billings-retreat-further-march
2. AIA/Deltek. “ABI January 2026: Billings remain soft to start 2026.” February 18, 2026. https://www.aia.org/resource-center/abi-january-2026-billings-remain-soft-start-2026
3. American Institute of Architects. “How to work with an architect.” 2026. https://www.aia.org/globalcampus/work-architect
4. American Institute of Architects. “Charging for services.” August 12, 2024. https://www.aia.org/resource-center/charging-services
5. American Institute of Architects. “Calculating the architect’s fee: Is there a better way?” November 29, 2023. https://www.aia.org/resource-center/calculating-architects-fee-there-better-way
6. American Institute of Architects. “Setting fees: What to consider.” August 12, 2024. https://www.aia.org/resource-center/setting-fees-what-consider
7. Washington State Office of Financial Management. “Chapter 08: Architect/Engineer Fee Guidelines and Fee Schedule.” Updated June 1, 2026. https://ofm.wa.gov/budget/state-budget-2027-29/instructions/capital/chapter-08
