I haven't raised my prices for commercial residential work [housing estates] by more than 5% since 1998.Some architects on this site, and elsewhere, are constantly moaning about a "race to the bottom" on price, fees and quality. They are unhappy at being undercut, they want prices to be somehow artificially inflated, and they have their heads in the sand when it comes to current market reality. They want price control, market control, and they are in denial in my opinion.
A sinkie might survive AND run a business profitably on €25,000, but not someone with a family.I also have a big problem with scare stories (peddled here and elsewhere) by vested interests regarding other architects who have faced up to market reality, and who have slashed prices to bring in business/cashflow, and to ultimately survive. ("Don't go for the cheap guy because your house will probably fall down. He must be a charlatan at that price. Beware, or you'll be sorry. Go for the higher-priced guy, because he must be kosher.) That sort of thing.
There is no spin in what I write - I don't tend to mix professional advice with comment on fee levels.I think this sort of stuff taints the advice given to some punters, because the advice has a hidden agenda, a subtext, which is to further the lot of architects and artificially boost prices. I don't like it, and it should be highlighted for what it is - spin.
I would have no problem with even the €500 fee allowed for by another poster if prices in every sector of the economy had also dropped by 75% but they haven't.Ireland is overflowing with architects, all of whom are hungry for work, because there is very little of it out there. That's tough if you are an architect with bills to pay, really tough - and those of us lucky enough to have a bit of an income should sympathise. But it is great if you are a consumer looking for an architect, or a photographer, or a graphic designer, or whatever you're having yourself. Prices are a fraction of what they were during the boom. Hurray!
I have no problem with those prices for an extension - €1,500 is a little tight if its to design it and lodge a permission and its too low to take it to site.I recently sought prices from several architects - all RIAI registered and qualified - to design a modest extension to my home (design only). The range in prices was unbelieveable for essentially the same service (all of them said they were pitching for the business according to RIAI guidelines). From well under €1,500 incl VAT to €6,000-plus-VAT-plus-a-moxy-load-for-spurious-miscellaneous-unspecified-"expenses".
I think you'll find that there are differences between those offices in running costs, quality, experience and ability that could justify that difference in price.Some of these guys have faced market reality, and some haven't. All of them have the same letters after their name. All would provide references. All would have to file designs adhering to the same building codes and regulations. Standards might differ, but not by more than six grand's worth.
This discussion was not prompted by architects prices - a straw man argument on your part.Architects prices are so low because there is way, way too many of them. The low prices will drive many of them out of business or else abroad - mainly the ones who won't roll with current pricing trends, the really bad ones, and the ones who refuse to adapt to current market reality. Only then will the market stabilise. It is simple economics. Ireland needs to shed lots of architects for the future sustainability of the profession. Hacked clean for better bearing, as Thomas Kinsella said.
Not yet, but it will be and you know what - you'll probably be one of the loudest complainers when you see what this current crisis will leave of the profession, the dregs who will work for nothing, churning out terrible designs to blight our cities towns and countryside.But you know what? That's not our problem.
I stated quite clearly that working for below cost is unsustainable.The best one that I have heard is the architect who thinks that prices should be artificially bumped up because s/he went to college - "a reward for third-level education".
Another straw man argument - I didn't invoke the government.So did half the rest of us, boss. What do you want? Government price control?
Your comments may be levelled fairly at some - not at me.In the meantime, consumers, let's make hay while the sun shines. Don't be put off by people who say to you that it is unfair on poor architects that you have hired a guy at a price that they view as too low. We are not obliged to maintain whatever lifestyles or cost bases they have chosen to have for themselves. These same people wouldn't have thought twice about charging you a high price during the boom, because the market would have allowed them to. Now the market works in our favour. A pendulum swings both ways.
Consumers have always had the power to beggar a profession, but most people have some sort of moral compass, where they are willing to pay a fair days pay for a reasonable service.Consumers now have real power when it comes to retaining professional services of all shapes and sizes. Let's use that power, to demand higher quality, as well as lower prices. Let's see how far that envelope can be pushed. The cheapest guy is not always the most shoddy, and the most expensive guy is not always the best quality.
If the fees offered are below cost, there is no profitability, no market and therefore no profession.The profitability of those professionals is their responsibility, not ours.
Does anyone here know roughly how much a sole trading architect might have to pay annually in liability insurance? Or can they purchase insurance by the project?
No. Professionals acting in the interest of the profession of which they are a part. Its normally written into their code of conduct. If they fail to abide by it and they are the subject of a complaint they may not get to practice the following year.Ah come off it. Professionals acting in the interest of potential competition?
No, there isn't. Once you have passed your exams and done your professional practice competently the professional body cannot unreasonably withhold membership.The reality is that there is restricted entry to most professional bodies as a means of controlling supply.
No again. There are minimum standards set for UCD and other colleges for Architecture. In Bolton Street the points can be lower but there is an aptitude test. I cannot comment on the other professions.Even the leaving cert points system flucutates in response to numbers seeking entry to in any given year. It's not a quality control thing - it's a numbers game.
Can't argue with that.I'd agree that a low price isn't everything but it's consideration. The best electrician I ever used was also the cheapest while some of the young turks who characterised the Celtic years charged high and were bad to the point of being dangerous.
On the other hand, the best solicitor I know is almost one of the most expensive but he's not the best BECAUSE he's expensive.
You're confusing two entirely different things.(snip)
My beef is that some architects and other professionals complain that the market rate is unfair, and encourage consumers on AAM and elsewhere to pay above this. That is bad advice, and also biased advice. The market rate has nothing to do with unfairness.
Another straw man argument.(snip)
That's like complaining the weather is unfair. It is pointless. It just is the way it is. Nobody has a right to stay in business.
Just on a point of order, lads, before you both explode in a fizz bomb of self-righteous indignation and frankly, on occasion, downright childish rudeness , onq is actually right and RIAD BSC is actually wrong on the "architect" thing.
mf
John Ruskin addressed situations like these when he said:
"The common law of business balance prohibits paying a little and getting a lot -- it can't be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better."
This appeals to those who believe or those who want to persuade others that price is the best indicator of quality.
However, on the flip side of that coin is an example of a Big 4 accountancy firm that charges €2500 for a simple VAT registration. This is one of the most basic tasks that is carried out by a trainee accountant at a maximum of 30 mins work. Alot of smaller accountancy firms would not even charge for this service and yet the outcome is exactly the same - there are no potential different outcomes for this service if it was provided by a Big 4 firm or a smaller firm however, the Big 4 firms have positioned themselves in the market where they are able to charge those fees and people are willing to pay them because they feel they are getting the best service. Ultimately the decision comes down to the consumer and caveat empor always applies.
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