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.
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Joel Niemi AIA
Joel Niemi Architect
Snohomish, WA
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Original Message:
Sent: 09-10-2025 06:10 PM
From: James Zack
Subject: Question to Small Firm Exchange regarding Additional Services due to increase in budget
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
w. 415.495.7889, ext. 201c. 415.797.22821672 15th StreetSan Francisco, CA • 94103www.zackdevito.com
Original Message:
Sent: 9/10/2025 4:37:00 PM
From: Thomas P. Gallagher AIA
Subject: Question to Small Firm Exchange regarding Additional Services due to increase in budget
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:
- 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)...
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