Professional Practice Architecture Practice Test

How is the Architect's remuneration determined in a design-build scenario by maximum cost?

1. Built in the maximum cost exclusive of Architect's registration fee

2. 10% inclusive of Architect's fee

3. 7% inclusive of Architect's fee

4. Lump sum inclusive of Architect's fee

The correct answer is: Built in the maximum cost exclusive of Architect's registration fee

In a design-build scenario where the architect's remuneration is based on a maximum cost, the correct method of determining the architect's fees is to calculate it as a percentage of the maximum cost excluding any additional fees, such as the architect's registration fee. This method ensures that the architect's remuneration is clearly tied to the project's budget and does not include extraneous costs that could complicate the financial arrangements. Choosing to exclude the architect's registration fee from the maximum cost allows for a straightforward calculation, providing clarity in financial expectations between the architect and the client. This aligns with typical industry practices, promoting transparency and ensuring that the architect's compensation is proportionate to the actual costs of delivering the project within the agreed maximum budget. In contrast, options that include specific percentages of the maximum cost, whether inclusive or exclusive of fees, do not address the foundation of evaluating remuneration based purely on the maximum cost framework, which is the principle highlighted in the correct choice.