Design Fees

  • SecondLook: David Heaney

    This Delaware remodeler has diversified his business by providing customized space plans and estimating services for health facilities..

     
  • Developing a design process starting with sales

    Todd Jackson of Jackson Design & Remodeling, in San Diego, developed a design process that starts with sales. “If you just turn a client over to a designer, they'll fall in love with a beautiful design that's over budget and can't be built,” Jackson says.

     
  • UR051001022cL1.jpg(90)

    Fee (Not So) Simple

    For some remodeling clients, the concept of a volume discount extends to remodeling projects. They argue that there are efficiencies of scale or that expensive finishes don't increase a remodeler's risk proportionately. Faced with a design/build remodeling project estimated in the million-dollar range, should you reduce your design fees?

     
  • Three aspects to design fee

    When you first begin charging for design, the fee is often seen as more of a client's commitment than a profit maker. “When you look at your efficiency in doing the design and moving the client through effectively,” says Mark Richard-son of Case Design Build, Bethesda, Md., “that's an indicator that you can start to look at the design fee more in terms of its profitability.”

     
  • Charging up-front for design

    Mark Richardson of Case Design/Remodeling says Case has, over a 30-year period, evolved a process for charging for design — preliminary design, for which the client is charged .5% to 2%; detailed planning, which is 6% to 8%; and construction. But Case didn't start out that way.

     
  • RM041101108L1.jpg(90)

    The Business of Design/Build

    In June, six design/build remodelers got together to talk about the business. Eavesdrop on their conversation.

     
  • Charge For Design Services

    Charging for design and other preconstruction services is growing more common among remodeling companies, but the design/build concept is rarely executed the same way twice. Design expertise is valuable. Get paid for it.

     
  • Three levels of service

    The owner of Daniel's Kitchen Design (www.danielskitchendesign.com) in Anaheim, Calif., says his design services are more affordable than those offered by full-service firms and Home Depot services, including the company's Expo Design Center.

     
  • rm5biz_hearn.jpg(90)

    Big50: Business Savvy

    Over the years, Mason Hearn's partners have retired or left the industry, leaving him sole owner of McGuire, Hearn & Toms. Until recently, Hearn charged a design fee of 3% of construction costs.

     
  • Opinions on whether estimates should be priced, and where to apply the fee

    Professionals pay professionals and know they must. I charge for estimates and keep the money because I believe that a contractor's time is extremely valuable. The homeowners receive 45 minutes to an hour of free consultation during the first meeting. After that, they pay for our time.