24/04/2020
Koala Hospital
Lord St, Port Macquarie NSW 2444,
Australia
Dear,
Re: Fee proposal for provision of Architectural Services
Koala Sanctuary, Port Macquarie.
It was pleasure meeting you and discussing the project for Koalas; your enthusiasm for
working for koalas is appreciated.
Further to our recent meeting, we include in this letter:
a summary of our assessment of the preliminary project brief and requirements.
a preliminary assessment of an indicative Cost of Works, and
a fee proposal for our services as your architect, all for your consideration.
A draft Client and Architect Agreement, enclosed with this letter, provides detailed information on the
services to be provided and contractual conditions associated with our engagement as your Architect.
Preliminary Brief and Area Analysis
We have summarised our understanding of your preliminary brief in accordance with our recent
discussions to allow us to evaluate the approximate size and complexity of the project.
The Koala Sanctuary is an extension of Koala Hospital; the extension will cater new
yards and wards for koala hospital, the sanctuary part will be designed based of
koala protection and giving them new home. The sanctuary will have co working
space for Port Macquarie public allowing them to learn how to co live with koalas.
This project will be one of a kind with hospital, working space and home for animals.
The key components will be as following:
10 yard for recuperation landscaping
Parking for Ambulance (18 sqm)
Temperature control chamber (36 sqm)
10 Koala pavilions
10 office space/studio attached with washroom (14 sqm each)
2 basic living space for convenience (46 sqm)
2 kitchenette area (12 sqm each)
2 open air working space (28 sqm each)
1 café (160 sqm)
1 eating joint (84 sqm)
Estimated total area : 610 sqm
Note: The approximated areas outlined above represent indicative estimates only and are likely to
change as the brief and design evolve.
Indicative Cost of Works:
Total constructed area (enclosed) – 610 sqm
Cost of building per sqm – 1230 AUD
Estimated Building Cost – 610 x 1230 = 750300 AUD
Landscape Area –
You will recall our discussion of what the Cost of Works includes and that our fees, among other
things, are not part of it. It is very important that we proceed with a mutual understanding of what the
Cost of Works covers.
Clause C of the Client and Architect Agreement sets out the definition of the Cost of Works. If you are
unclear on what parts of your Total Project Cost are included in the Cost of Works and which parts are
not, please ask us.
On our current understanding of your brief, and the quality and size of the project, our preliminary
assessment of an indicative Cost of Works is $XXXXXX (ex GST).
In deriving this preliminary assessment of the indicative Cost of Works we have considered market
trends for projects which are similar in nature, but indicative costs are not a guarantee of the actual
costs for your project.
This preliminary indication of cost is provided to assist you in understanding your brief and your Cost
of Works budget as it relates to your Total Project Budget, discussed below.
As discussed, we highly recommend the engagement of a quantity surveyor or professional cost
consultant to assist you in managing your budget by providing more accurate estimates as the project
takes shape.
Total Project Budget:
The Total Project Budget (also defined in clause C of the Client and Architect Agreement) includes the
Cost of Works plus all other costs that relate to the project including (but not limited to) our fees and
Structural Engineer, Facade Architect, Technical consultants such HVAC, Mechanical and Electrical
engineer as fees for statutory approvals, loose furniture, work under other contracts not coordinated
by the architect, such as furniture supply, landscaping, etc.
As discussed, you are responsible for managing the Total Project Budget, because it has components
we are unable to control, manage, or take responsibility for. One of these is the addition of GST to
those components which are expressed as ex GST, such as the Cost of Works and our fees.
However, we recommend that you include in the Total Project Budget a “contingency sum” of say
20%, to allow for unforeseen expenses that may eventuate as the project proceeds.
A few examples of expenses which might arise that you do not presently expect could be:
you might later decide to have us carry out extra services you have not presently anticipated,
the services of another specialist consultant may prove desirable or necessary, or
during the construction of the project, you may decide you want to change something which
involves extra cost to you (variations).
We understand that more detailed consideration of your Total Project Budget may require an
adjustment to the funds available for the Cost of Works.
Proposed Fees for Architectural Services:
Fees for Core Architectural Services:
The scope of these services is listed in Clause A, and in Schedule A of the draft Client and Architect
Agreement.
We propose a Percentage Fee Agreement of 15 % of the Cost of Works (excluding GST as outlined
above) for which a preliminary estimate is:
XX % of $XXXX (preliminary assessment of indicative Cost of Works excluding GST) = $YY (Ex GST)
The breakdown of these fees, related to specific stages of the delivery of Core Architectural Services
is defined in Schedule E.1 of the attached Client and Architect Agreement.
Fees for Additional Architectural Services:
As discussed with you, we have identified that the following architectural services are required in
addition to the Core Architectural Services. These are shown in Clause B and Schedule A of the
Client and Architect Agreement.
These services will attract the fees as outlined in Schedule E.1, and/or E.2 of the Client and Architect
Agreement.
When considering your Total Project Budget you will need to consider our fees for both Core and
Additional Architectural Services.
Secondary Consultants:
In our discussions with you, we have identified the need for specialist consultants to assist in the
delivery of the project and these are listed in Schedule F of the Client and Architect Agreement.
This Schedule indicates the specialist consultants who, as discussed, are to be engaged by you on
the terms outlined in clause F.1, and their fees will need to be considered in your Total Project
Budget.
We will make recommendations if the need for additional specialist consultants arises during the
course of the project, and if they are engaged, clause F.2 will govern the arrangements.
Disbursements:
We have discussed with you the items for which you would reimburse us their cost and those which
would also attract a service fee. Those we have presently identified are set out in Schedule E.3 of the
Client and Architect Agreement.
For those disbursements listed with a service fee applicable, clause E.6 of the Client and Architect
Agreement provides that the service fee payable in addition to the invoiced cost of a disbursement is
15%.
If these disbursements are likely to be significant in the circumstances of your project you may wish to
consider their likely total amount in your Total Project Budget.
Programme for delivery of services:
We estimate that the design and documentation stages of the project will be delivered over about 12
to 18 months. However, this will depend on several factors critical to the timeframe for delivery of
these stages, such as the time it takes to obtain planning approval. We are not in a position to
estimate how long the planning approval will take.
As well, there are the necessary approvals for building work to commence, and the selection of the
contractor. Again, we are not in a position to estimate the time involved before the construction can
begin.
Following this, we expect that when construction work starts, it will take about 30 to 36 months to
reach the stage where you can occupy the project.
Engaging us to work further with you
We confirm our enthusiasm for providing architectural services for your project and look forward to
exploring the opportunities that your project provides.
However, before we do further work we request that you formally confirm our engagement.
As discussed and noted above, we propose our engagement is formalised by signing the Australian
Institute of Architects Client and Architect Agreement, as enclosed with this letter in draft form. We
encourage you to read it carefully, refer it to your lawyer if you wish, and/or discuss with us any issues
you may have.
We look forward to your confirmation, which will lead to our preparation of a copy of the Client and
Architect Agreement for signing, but please do not hesitate to call us if you have any questions.
Yours sincerely,
____________________________ Pty Ltd Architects
_________________
Director / Principal / etc
