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If Honesty Pays Architects

November 24, 2012

If honesty pays, why are so many architects poor?

In a normal government project with between 5-1.1% fees of the project cost, here’s the break-up of quoted fees, give or take a few… Whereas many clients presume 100 % of it to be profits:

30% are Salary (of staff, and of the adjunct staff dependent on that staff)

30% are Project expenses

20% Overheads, office expenses, Business Development (accounts for all the free work done for projects that don’t convert)

10% for within the scope revision which invariably happens

10% for contingencies like last minute ideas requiring major changes, delays and cerebral failures

5% for EMD (Earnest Money Deposit) or Last Payment (Like Judgement Day, you wait and wait for it)

20% Legitimate Profit

20% goes back to the client, for purposes best left unmentioned, hard cash mostly, no bargain with the ‘client’

You might have noticed that the above doesn’t add up to be 100%. The difference explains two things: One, the struggle and frustration of those idealistic (read impractical) ones, and the cushy lives of those who are indeed, practical.

No judgement here, but if honesty pays, why are so many architects poor?

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