Most homeowners prioritise the headline build costs when they are setting their budget for a significant renovation or self-build, and underestimating project management and professional fees is one of the most frequent and expensive mistakes I see, and have to advise on, as a quantity surveyor.
These are not extras that are optional. Paying for them means your project will be successfully designed, structurally sound, legally compliant and efficiently delivered with professional involvement. Redesigns, delays, disagreements or expensive on-site mistakes frequently come about as a result of skimping in this area.
This article explains what professional fees actually cover, what you should budget for and where you may be able to control or cut costs without sacrificing quality.
How much can professional fees cost on average?
Costs associated with the build are separate from professional fees. Professional fees cover the project's design, technical input, conformity and administration, whereas build costs are related to labour and materials on site.
In real terms, such costs usually make up between 8% to 15% of the overall build cost, and occasionally they can amount to much more, depending on the complexity, method of procurement and the degree of specialist engagement required. This might be equivalent to £32,000 to £60,000 or more for a project worth £400,000.
Certain duties will be necessary for every project, but others will vary based on the complexity, site limitations and the method of procurement.
Also, it's worth remembering that, whenever possible, you should try to have a ‘fixed-fee proposal' for your professional fees rather than a percentage-based fee. Otherwise, if your build cost goes up so do your fees.
Professional fees by service and type
Usually, professional fees cover the following services:
- Design professionals Architects, architectural designers or architectural technologists
- Engineering professionals Structural engineers and, where required, civil engineers
- Specialist consultants Planning consultants, quantity surveyors, energy assessors, SAP assessors, party-wall surveyors
- Project management Either a dedicated project manager or a professional taking on a dual role
- Statutory costs Planning fees, building control fees, inspections, utility fees
- Legal and warranty costs Structural warranties, legal agreements, party-wall matters
Architects, designers or architectural technologists fees are not avoidable
From conception to technical drawings appropriate for construction and Building Regulations approval, these professionals produce the design. They are typically required for new builds, complicated renovations and projects that need a lot of design engagement or detailed planning. They might also help with contract administration and planning applications.
How they charge: Build cost percentage: usually between 5% and 12%; fixed cost for specific phases; hourly rates for any extra services required.
Typical costs: For basic planning and design around £3,000 to £8,000; for a complete service (from conception to completion) around £20,000 to more than £50,000 for bigger buildings.
Structural engineer fees are essential on many projects
Risk is decreased on a project by having a properly executed design. From experience, one of the main causes of cost overruns is inadequate or poor drawings, therefore the main role of a structural engineer is to provide structural calculations and designs for steelwork, roof structures, load-bearing components and foundations.
They are constantly necessary for structural projects, and highly important for everything from extensions and knock-throughs to non-standard builds. This is not a place to cut corners. Site delays and costly remedial measures are caused by inaccurate or absent structural design.
How they charge: Fixed fees for each component or package; occasionally, hourly fee for additional input.
Typical costs: £1,500 to £4,000 for a small home project; complex or larger schemes would be £5,000 to £10,000+.
Planning consultant fees may not always be needed
The role of a planning consultant is to manage negotiations with the local authority, prepare and submit applications and offer planning strategy advice. They can often be required when a site is in a conservation area or green belt, if the building is listed or in a location that has a history of planning issues or restrictions.
In these instances, a planning consultant can cut down on expensive redesign cycles and greatly increase the likelihood of approval.
How they charge: Fixed application fee; extra costs for amendments or appeals.
Typical costs: Simple application in the region of £1,500 to £3,500; sites that are sensitive or complex from £5,000 to £10,000+.
Project manager fees can end up being recouped
If you decide to hire a project manager, they will oversee the project's completion, coordinating the programme, trades, cost and quality.
They are a good idea if it's a difficult construction and design, if you are a client with little time to get involved or have limited expertise or for projects involving various coordinated packages and trades. Through increased productivity, fewer delays and better cost control, competent project managers will typically pay for themselves.
How they charge: Percentage of build cost, usually between 3% and 7%; a monthly fixed charge or a day rate.
Typical costs: £10,000 to £30,000+, depending on the scope and length of the project.
Quantity surveyor fees can prevent budgets escalating
Throughout the build process a quantity surveyor (QS) offers cost planning, procurement advice, tender documents (bill of quantities) and cost control.
Quantity surveyors are ideal for projects where having a clear budget is essential, when clients are looking for competitive bids or if it is a bigger or risky build.
How they charge: Fixed fee for specific services or a percentage of build cost (less common in residential projects).
Typical costs: Advice on early costs are around £300 to £1,000; complete cost control and tendering from £2,000 to £10,000 or more. One of the best strategies to prevent budget overruns is to bring in a quantity surveyor early.
Party wall surveyor fees will only be needed when there's a party wall
When a build or renovation affects nearby properties, you must comply with the Party Wall Act 1996. A party wall surveyor is needed when works are on or close to common boundaries or there are modifications to the party wall's structure.
How they charge: Fixed cost for each award or notice; in more complicated issues, hourly rates.
Typical costs: £800 to £2,500 or more for each neighbour; more if disagreements emerge.
Other professionals who may charge fees
According to the scope of your particular project, you may also need to engage the services of:
- Energy consultant/SAP assessor: £300 to £1,500
- Topographical surveyor: between £500 and £2,000
- Geotechnical surveys: between £1,000 to £5,000
- Building control consultant: depends on build route and scope
What statutory costs might you need to pay?
These are mandatory costs relating to compliance and approvals, so it is important to make sure you include these in your budgeting. I often find that clients' early budgets underestimate or completely overlook these fees.
- Planning application fees: Householder applications often cost £528 in England (with certain variances in Wales). Depending on scale, full applications for new builds are higher. Drawings, reports and accompanying documentation may incur additional charges, too.
- Building control fees: Your options are to use an approved inspector or the local authority. Generally, depending on the magnitude of the project, £500 to £1,500+, which will include site inspections and plan validation.
- Warranty fees: If using a structural warranty, which is necessary for mortgages and typical for self-builds, costs are usually between £2,000 and £6,000+. Among the providers are Self-Build Zone, LABC Warranty, NHBC and Protek Insurance.
- Additional statutory costs: New builds may be subject to Community Infrastructure Levy (CIL). You may also have to consider reports on conformity with Building Regulations, such as SAP, airtightness tests, drainage and utility approvals.
How to save money on your professional fees
If budgets are tight, it can be tempting to look at how to reduce professional fees as a way of cutting overall costs. While this might be understandable, it can often have a negative impact on the success of your project.
However, there are suitable strategies you can look at incorporating into your project that will help to control such costs without sacrificing overall quality.
- Clearly define your brief: Redesign work and extra costs result from an ambiguous or ever-changing brief. Take the time to define everything from layout requirements, financial limitations and level of specification at the earliest stage possible.
- Early commission of surveys: Surveys of the topography, structure, soil and location minimise ambiguity and avoid future redesign.
- Make use of fixed-fee contracts: Agree on fixed costs for specified deliverables wherever feasible. This prevents scope creep and offers cost certainty.
- Combine roles: Some professionals are able to play several roles. An example of this would be an architect taking on the role of a project manager. This means one consultant is in charge of design and planning, which can lower overall fees and avoid duplication.
- Think about partial services: Rather than hiring an architect, you could commission only planning drawings. For technical drawings, an option is to hire an architectural technologist, through the Chartered Institute of Architectural Technologists (CIAT).
- Self-manage all or some of the project's elements: If you have time and experience you could directly oversee and project manage procurement, organise and integrate trades on easier builds. On complicated projects, though, this should be done with caution as, without the necessary experience, it can lead to higher costs.
Avoiding extra costs or fees
While cost-cutting measures can be necessary in many projects, there are some areas you should never skimp on to try and save money. They can lead to long-term problems that can be even more costly to rectify than if you had simply done them properly in the first place.
- Ignoring structural calculations and design: This may result in dangerous building methods and expensive corrective actions. Your structural engineer's advice is sometimes more important than your architect's.
- Lack of project management for intricate projects: Coordination issues can lead to rework, delays and higher expenses. Ask yourself, do you really have the time and expertise to be a PM before you take on this key role?
- Underestimating the need for compliance: Inspections, warranties and Building Regulations are all required and must be appropriately planned for. Checking with your local authority on what's required is a safe bet.
- Cutting back on design guidance: One of the main reasons for this is incomplete or inadequately detailed designs. This will then lead to disputes and variations – and inevitably an overspend on the project.
Every cost plan I prepare for clients for a self-build, significant house renovation or extension must include professional fees and project management costs. Although they may seem like an extra expense, they are essential and sometimes legally required in making sure your project is economical, efficient and compliant.
By lowering risk, preventing mistakes, and enhancing decision-making throughout, the appropriate expert advice will typically save more money than it costs.
Investing in the appropriate amount of professional expertise at the appropriate time is more important than just cutting these costs. When done correctly, this will significantly increase your chances of completing your project on schedule, under budget and at the level you want.
