Which compensation method is deemed fair for both the Client and the Architect?

The percentage-based fee method is considered fair for both the client and the architect due to its inherent structure, which aligns the interests of both parties. This approach allows the architect to earn a fee that correlates with the overall project cost. As project costs increase, resulting from changes or enhancements, the architect's compensation scales accordingly. This means that architects have a vested interest in managing costs effectively since their fees grow proportionately with the total project expenditure.

From the client’s perspective, a percentage-based fee can be advantageous as it encourages transparency and reflects the true scale of efforts required throughout various phases of the project. This method helps manage expectations and resources as the architect is incentivized to work efficiently within the budget constraints while still maintaining a level of quality and service.

In contrast, fixed fee arrangements might not reflect the extensive work involved or unforeseen challenges, potentially leading to disputes over scope and compensation. Time-based fees can lead to uncertainty regarding final costs, which may not provide the financial predictability desired by clients. Cost-plus arrangements might encourage a lack of cost control, as the final costs can escalate without a direct bearing on the architect's fee structure.

Overall, the balance achieved by a percentage-based fee fosters collaboration and fairness, making it an ideal choice for stakeholders