When it comes to home building, interior design, architecture, and decorating, there are different fee structures for everyone. It is important to understand how a fee structure works when considering taking on a home building or home improvement project. Erin Sander breaks down her interior design fee structure for us in the latest episode of our extended video series on YouTube.
Construction Design: Charged by the square foot
Furnishings: Charged by the hour
Purchasing of Furnishings: Whole sale cost plus 25%
If you ask us, an interior designer is a must to achieve the most functional and beautiful project. An interior designer will bring such a unique touch to your home by being able to design custom furniture and purchase one of a kind products at a much lower cost to you. In addition to bringing cost savings, an interior designer will save you a lot of time and decisions throughout the home building process!
In home building, fee structures also vary. At Coats Homes, our most commonly used fee structure is called Cost-Plus. This means you are paying for the cost of materials and labor plus a percentage of your total contract price. The plus part of this fee structure is what pays for all of our operating expenses including our salaries and office supplies. We also have a fixed fee contract that is less commonly used. A fixed fee says that you would pay the cost of materials and labor plus a fixed fee of X amount of dollars.
As always, be sure to talk to your builder and designer about what fee structures they offer and the best choice for you!
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