The dreaded fee discount and its effect on design.

August 3, 2023

News

Fee discounts in the building industry can have both positive and negative impacts on the quality of design. Below is my take on some of the ways that reduced fees can affect the way we design.

Reduced Budget for Design Services: Fee discounts mean that architects, engineers, and other design professionals receive lower compensation for their work. As a result, they may have less time and resources to dedicate to a project, which could lead to rushed design processes and potential compromises in the quality of design.

When design professionals face reduced fees, they might be less motivated to invest time and effort into innovative design solutions. They might opt for standard or cookie-cutter designs that they can complete quickly, rather than pushing boundaries and delivering unique and thoughtful designs.  Further to that, if the fee is percentage based, then reducing the cost of a project penalises the professional by further reducing the fee.  We are always pushed to reduce costs, but reduced costs equal less fees for more work, which is not a good model to incentivise anyone to try and reduce costs.

Increased Workload and Burnout: To compensate for reduced fees, design professionals may take on more projects simultaneously to maintain their income. This increased workload could lead to burnout, fatigue, and reduced attention to detail, potentially compromising the quality of the design. Added to this, rushed design processes and limited time for going over designs thoroughly may increase the likelihood of errors in the design, leading to potential issues during construction or after completion.

Less Time for Research and Development: In-depth research and development are essential for creating sustainable and cutting-edge designs. Fee discounts may limit the amount of time available for research, resulting in less thorough analysis and understanding of the project’s specific requirements and context.

It’s important to note that not all fee discounts automatically result in poor design. Some fee structures might still provide sufficient compensation for design professionals to deliver high-quality work. Certain discounts make projects viable, which in turn means there is more work out there for all role players, however, when fees are significantly reduced and not in line with the complexity and demands of the project, there is a higher risk of negative impacts on design quality.

To ensure that good design is not compromised by fee discounts, it’s essential for clients and industry stakeholders to recognise the value of well-designed spaces and invest appropriately in the design process. Effective communication, clear project scope, and mutual understanding between clients and design professionals are also vital to achieving successful projects even in the face of budget constraints.

– Alan Shepherd