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  • 1.  Question to Small Firm Exchange regarding Additional Services due to increase in budget

    Posted 09-10-2025 04:37 PM

    Seeking this group's and the firm's / the industry's position on something here:

     

    We are trying to get some additional services on a large Single Family Residence.

     

    I'm trying to make the main point to our client that we deserve additional compensation due to increased Budget. Our B105 Contract's "Initial Information" section defined the Anticipated/ desired budget at $3-4M. (also key to note that the client requested this number be put into the contract) The Current Budget estimate stands at $6.9M. Two other Contractor's preliminary numbers were roughly at / or way above this figure.

     

    The  has said "I won't consider the ask if you can't find contract language that supports it".

     

    I think I have found the Contract language I need:

    Art. A.4 "initial Information":

    "the anticipated budget for the Cost of the Work: Approximately $3-4M."

     

     

    Article 6 Payments and Compensation to the Architect:

    "At the request of the Owner, the Architect shall provide additional services not included in Article 1 for additional compensation.

    Such additional compensation may include...revisions due to changes in the Project scope, quality or budget."

     

     

    I think the keywords here are quality, and most importantly, budget. (We have already received a small Add Services for Scope (size) alignment.)

     

    My language for the ask might go like this:

     

    "Dear Clients:

    1. Article A,4., defines the Anticipated budget as $3-4 million. (and this was a specific number that you requested be included in the Contract, not a swag by us). Refer to Article 6: "the Architect shall provide additional services listed in Article 1 for additional compensation. Such additional services may include....revisions due to changes in the Project scope, quality or budget". We have requested and been provided additional compensation due to increased scope (as measured in square footage). Our current budget estimate stands at $6.9m. This is clearly a change in budget, not an inflationary increase, not "one Contractors opinion" (as the other 2 GC estimates also were near or way above this opinion). Given three cost opinions, this is clearly a house with different quality than one with a $3-4m budget."

     

    Thoughts? Supportable by our industry? Supportable if we would take him to court over it? (which we wouldn't)...

     


    SEMPLE BROWN | ARCHITECTS AND DESIGNERS

    TOM GALLAGHER, PRINCIPAL, AIA, LEED® AP BD+C

     

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    26.09.14 CRAN Symposium Final


  • 2.  RE: Question to Small Firm Exchange regarding Additional Services due to increase in budget

    Posted 09-10-2025 05:31 PM
    Heck yes, you do fantastic work, they're lucky to have you, and you absolutely should get significantly more fee for significantly more work. And yes i think Art. A.4 is sufficient. I'd put it as simply as possible, and word it more like a requirement to do the project, not something you have to justify as if you don't deserve it. In these situations I like to draw a line as early as possible, to be sure the owner (or contractor in other cases) understands how much we value what we bring--no one understands that better than we do. Not cockiness, just confidence. I sincerely hope the client will respect you for respecting yourself and your firm's strong work, and will want you to put in all the effort a great project demands.

    --
    Tom Bassett-Dilley FAIA CPHC LFA
    708.434.0381

    NOTE: TBDA is on Summer hours through August 15, with Fridays off.



    26.09.14 CRAN Symposium Final


  • 3.  RE: Question to Small Firm Exchange regarding Additional Services due to increase in budget

    Posted 09-10-2025 05:35 PM

    I agree with Thomas, you are well within your right to request and Add Service. The client asked for the contract language that allows for the additional request. Just simply reply with that language, you do not need (and I don't believe it will help) to add any backstory to your email. Short and sweet and only the facts is the best place to start. 



    ------------------------------
    Caitlin Daley AIA
    BKP Archiects
    Philadelphia PA
    ------------------------------

    26.09.14 CRAN Symposium Final


  • 4.  RE: Question to Small Firm Exchange regarding Additional Services due to increase in budget

    Posted 09-10-2025 06:10 PM
    I agree with the to other two comments, the contact language does support an increase in fee if the scope and/or budget increases.    We use situations like this to add language to our contracts to assure this does not happen again.  We emphasize the contract budget is preliminary and that if the scope and/or budget increases the assumption is the fee will increase proportional to the budget increase.  
     
    We do not typically use AIA contracts, but as I recall there ei slap language that states the architect is not responsible for the budget.   When we have clients who are stedfast in there unrealistic budgets I use this:

    Owner's Budget:  $1,800,000.00

    Architect does not believe the project described by the owner can be built for the onwer's stated budget.

    Architect's Budget:  $2,200,000 - 2,400,000.00


    I like to use ranges in this situation further emphasizing there is no set budget, it is dynamic.

    Houses are not schools, or civic buildings, owners do not typically prepare accurate budgets, they are guesses or funds  available, vs. funds required.

    Thank you,



    Jim Zack, FAIA | principal


    AIA San Francisco 
    2025 Firm Leadership Award 

    ZdV-Logo_NEW.jpg
    w. 415.495.7889, ext. 201
    c. 415.797.2282

    1672 15th Street
    San Francisco, CA • 94103

    www.zackdevito.com




    26.09.14 CRAN Symposium Final


  • 5.  RE: Question to Small Firm Exchange regarding Additional Services due to increase in budget

    Posted 09-11-2025 05:36 PM

    A simple psychological tip in followup to Mr. Zack's suggestion to include the architect's opinion about project costs.

    Decades ago, Omer Mithun (founder of that Mithun firm in the Seattle area, and now elsewhere) taught the professional practice course series at the University of Washington.  We watched him try to keep his pipe lit while lecturing, and heard all sorts of war stories and advice.

    One was: "When you tell people a range of prices, start with the high number and then mention the lower end.  People will remember the first number they hear.  When the project comes in at lower cost, you are a hero.  The other way around, when the cost is in the middle of the range, it is your fault that they had to spend more."

    Most effective for verbal statements, but tends to work for written ones as well.



    ------------------------------
    Joel Niemi AIA
    Joel Niemi Architect
    Snohomish, WA
    ------------------------------

    Original Message
    26.09.14 CRAN Symposium Final


  • 6.  RE: Question to Small Firm Exchange regarding Additional Services due to increase in budget

    Posted 09-10-2025 06:19 PM
    Edited by Benjamin Lepley, AIA 09-11-2025 01:37 AM

    Hi Tom,

    Was the program, square-footage, or complexity of the project expanded since the beginning?
    Did the client keep pointing at things saying "can you include this gizmo, I want that, add this spa, etc."?

    If there was no scope creep and just you underestimated inflation or project costs, I would not ask for more money, the client is probably already upset with you, and you're on thin ice. 

    Best of luck, been there, it's not fun! 

    -Ben 



    ------------------------------
    Benjamin Lepley AIA
    Tectonicus Constructs llc
    Bisbee AZ
    ------------------------------

    26.09.14 CRAN Symposium Final


  • 7.  RE: Question to Small Firm Exchange regarding Additional Services due to increase in budget

    Posted 09-10-2025 06:33 PM


    I'm writing to share some thoughts on additional **** in design projects.

    In my experience, additional **** are certainly justified when they are commensurate with extra work or design revisions requested by the owner, especially if these changes result in an increased budget. In such cases, it's crucial to provide timely notice of the change and potential additional ****. This approach offers the best chance for a successful fee request.

    However, if the budget increase is solely due to market conditions or higher costs after the design is complete, it becomes challenging to justify additional ****. On the contrary, you might need to cover yourself from client requests for design revisions to lower the budget if it significantly exceeds the stipulated amount in the agreement.

    Best regards,
    Arturo G. Griego

    Arturo G. Griego, AIA, FGBC, CGC
    G3AEC.com
    975 Arthur Godfrey rd. Suite 600 Miami Beach, Fl. 33140
    305 763 8471
    AR 94011 | CGC 1523342



    26.09.14 CRAN Symposium Final


  • 8.  RE: Question to Small Firm Exchange regarding Additional Services due to increase in budget

    Posted 09-11-2025 02:08 PM

    We have found budget creep (obviously tied to scope creep) to be the biggest problem on residential projects.  When dreams do not relate to budget, emotions get involved!  I think your refence to change is scope, quality, or budget is helpful, but I have a few other questions/comments for you:

    1. Is your fee fixed or based on percentage of construction cost?
    2. We often work on an hourly basis until the design is set, develop an estimate, then if approved, set the fee for remaining phases.  This has helped us avoid issues later with budget.
    3. I see you reference the B105 contract.  I would suggest a change to the AIA Custom Residential Contract.  I have used the 105 before for very small projects, but think you would be better served by the other one.

     

     

    Eva M. Read-Warden | AIA

     

    The Arkitex Studio, Inc

    facebook | instagram | linkedin

    O 979-821-2635 x 211 

    D 979-393-0613

    arkitex.com

     




    26.09.14 CRAN Symposium Final


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