Post 560 –by Gautam Shah
Design Professionals take on assignments for fees, determined by themselves, and sometimes after further negotiating with the clients. Professional Design Fees are very subjective, and vary from a professional to professional, from one project to project, and also from one client to another. There are no standards. Right Fee is judged on following counts :
- Is one aiming at a reasonable profit?
- Is one striving for a high return to manage a high risk situation?
- Is one striving for a high return for a rare contribution?
- Is one trying to break-even, -operate at a no or less profit situation?
- Is one seeking to avoid hiring new staff and procuring new technologies?
- Is one looking for hypothetical – future benefit?
- Is one, bartering an advantage?
Relationship between a professional and a client develops very gradually. Client and professional usually have some degree of rapport, even before a job is discussed. A professional and client both, however, may wish to delay a discussion about fees, terms and conditions.
A professional must discuss fees as early as possible, because an Informal Relationship can turn very vicious at any stage. When disputes arise either of the parties may refuse to even acknowledge the relationship between them. In such a situation the Professional will lose all that was spent in understanding, preliminary working, planning of the project. This could include not only labour, stationary but patent ideas. On the other hand, the Client will never recover the time wasted in searching, identifying and engaging the professional. So all Discussions for fees, even if agreeable, must be backed by a detailed communication in writing. Negotiating a fee is not always an inevitable issue, as many clients accept a professional’s proposition, without arguments. But Fees Negotiation could become a long drawn, tiring and worrisome process. A client may not be asking for a discount, but just trying to understand the fees completely.
A professional ethically may not Discount a stated Fee for a promise to get further work or favour. Similarly a (registered) professional must not participate in any tender like procedures, or pay any amount as a Guarantee Money for their services.
Links to some of my Blogs relating to DESIGN FEES
MANAGING FEES -for Building Design practices PART – IV
MANAGING FEES -for Building Design practices PART – III
MANAGING FEES -for Building Design practices PART – II
MANAGING FEES -for Building Design practices PART – I
DETERMINATION of PROFESSIONAL FEES
FEES NEGOTIATIONS WITH A CLIENT
DESIGNERS DILEMMA – RIGHT FEES
INTERIOR DESIGN and CLIENTS
CLIENT and DESIGN PROFESSIONAL -Relationship
A PROFESSIONAL and PROFESSIONAL BEHAVIOUR
COMMITTING a CLIENT for JOB
DESIGN ORGANIZATIONS and ENTITIES
Differentiating COST from VALUE -Interior Design Practice
DELIVERABLES from ORGANIZATIONS
INTERIOR DESIGNER – the role