The Hidden Costs of a ‘Cheap’ Architect (Warning Signs You Shouldn’t Ignore)

Did you know that in 2023, nearly 6 in every 10 applications for building extensions requiring prior approval were refused? It’s a staggering result that underscores a critical point: mistakes in architectural planning are costly. If you’re considering taking the “cheaper” route with architectural services, think again. What seems like a bargain could jeopardise your project’s success, leading to increased expenses, project delays, and potential legal challenges. Before you decide to cut corners, let’s dig into why cheaper is not always better and the warning signs you need to watch out for when choosing an architect.

CONSIDERATIONS BEFORE CHOOSING YOUR ARCHITECT

Selecting an architect for your property investment is partly a budgetary decision, yet it involves much more. It’s about value, safety, and long-term benefits. Experienced architects bring a depth of knowledge that transcends basic design; they master complex regulatory frameworks, foresee potential challenges, and tailor solutions that maximise aesthetic appeal, functional efficiency, compliance, and chances of council approval.

Investing in qualified architectural services should give you the confidence that every aspect of your property is considered from the outset, reducing the likelihood of costly mistakes arising from inadequate planning, such as non-compliance with building codes or designs that fail to consider tenant needs and preferences.

While experienced and professional services may carry a higher price tag, the alternative low-cost architectural deals can be a warning sign of potential underestimation of the project’s scope, real potential and associated risks. Ultimately, the initial savings from cheaper alternatives could pale compared to the financial and legal consequences of an inadequately planned project.

RISKS OF LOW-PRICED ARCHITECTURAL SERVICES

Opting for a ‘cheap’ architect might seem financially prudent at first. Unfortunately, initial savings can lead to unanticipated expenses down the line. Low-cost architectural services may come with unadvertised truths, such as not including comprehensive project management or follow-through, often resulting in oversight of critical details.

This risk is heightened in complex projects; consider, for example, the densely packed settings typical of Houses in Multiple Occupation (HMOs) where more elements, such as insulation, soundproofing, size and layout requirements, and heating standards, become vital. Here, the risks extend beyond the physical building. Inadequate planning and design can lead to delayed project timelines, increased costs due to rework, and even potential legal consequences if the final product fails to meet regulatory standards, such as fire safety.

While the appeal of keeping the costs low is understandable —and a common target for property investors and owners, there is also the potential for increased lifetime costs to consider. This can include higher maintenance costs, difficulties attracting and retaining tenants, and lower overall property value.

DOES YOUR ARCHITECT HAVE THE RIGHT INSURANCE COVERAGE?

As an architect and investor with a sizable background in property development and the HMO market, I can’t stress enough the importance of an architect having proper insurance coverage. More than a formality, insurance is a critical component that protects both the architect and you, the client, throughout your project. Often, behind cheap architectural services is ‘cheap’ insurance coverage.

UNDERSTANDING THE CRITICAL ROLE OF INSURANCE COVERAGE

Ensuring that your architect includes adequate insurance is crucial for protecting your investment from unforeseen liabilities and risks associated with architectural errors or omissions.

Professional architects typically carry professional indemnity insurance that covers the costs of rectifying mistakes in the design and construction process. For example, in the event of additional construction costs or legal disputes, a well-insured architect can address these issues without exposing the property owner to significant financial risk. Ideally, for a project valued at £800K, an architect should have at least double that amount in coverage, say around £2M, to provide a robust safety net.

In contrast, cheaper architects might carry less comprehensive insurance, which may not fully cover the potential costs of design flaws or regulatory non-compliance. This difference can be a critical factor in the overall security and viability of your project, and it highlights the importance of choosing an architect not just based on fee but on the level of professional protection they offer.

Choosing an architect with adequate insurance coverage safeguards your investment in several ways, including:

• Financial Security: It mitigates your financial risks if errors occur.
• Compliance: An insured architect is likely compliant with professional standards, indicating professionalism and seriousness about their business practices and deliverables.
• Peace of Mind: Knowing that potential risks are covered makes the construction process less stressful.

DOES YOUR ARCHITECT HAVE THE RIGHT EXPERIENCE AND EXPERTISE?

The level of experience an architect brings to a project directly influences the likelihood of its success. Experienced architects are adept at navigating the regulatory environment. In the HMO market, for example, your architect’s competence is crucial for anticipating potential challenges and designing spaces that are compliant with the law, optimally functional, and appealing to tenants—all vital in such a competitive market.

Consider a scenario where an inexperienced architect fails to plan for sound insulation between units in an HMO properly. This oversight might lead to tenant dissatisfaction and high turnover, ultimately impacting the rental yield.

Seasoned architects manage to avoid common pitfalls that less experienced professionals might overlook. These drawbacks go from gaps in communications to poor material choices that lead to increased wear and tear, misjudgements in space planning or inadequate provisions for fire safety. Each of these mistakes can cause costly reworks, delays, and even legal penalties, all of which affect the profitability and timeline of the project.

When it comes to expertise, seasoned architects also bring some additional advantages:

1. Communication: With experience comes improved communication skills. Experienced architects are better equipped to manage expectations and communicate timelines, risks and plans realistically and in a way that aligns with clients’ goals.
2. Problem-solving: They possess advanced problem-solving skills for dealing with unexpected issues. Their ability to swiftly and effectively find solutions helps keep the project on track.
3. Negotiation and Mediation: Dealing with various parties involved in a project requires strong negotiation skills, which experienced architects develop over time. Whether it’s negotiating prices, schedules, or the scope of work, their ability to mediate can be crucial in keeping a project on target.

DOES YOUR ARCHITECT ASSURE QUALITY AND TIMELINESS FOR DELIVERABLES?

One of the pitfalls of opting for low-cost architectural services is the potential for overbooking. To compensate for lower fees, ‘cheap’ architects may take on more projects than they can realistically manage, leading to significant delays in project timelines. These delays are not just minor inconveniences; they can escalate costs, disrupt planning, and extend construction schedules, ultimately affecting the project’s profitability and feasibility.

To mitigate the risk of such delays, confirming the architect’s current workload and availability is crucial before engagement. Asking for explicit commitments on timelines and regular updates can help manage the schedule proactively. Architects with the experience and adequate resources can offer you a more realistic and accurate plan to prevent delays due to overbooking. 

Architects leverage their expertise to calculate and adhere to project timelines and budgets. How much do you value precision in your property project?

ACCURATE TIMELINE ESTIMATION

1. Historical Data: Experienced architects have a reservoir of knowledge from past projects, which includes insights into how long certain phases typically take and what potential delays might occur. These first-hand insights allow them to provide more accurate estimates and realistic timelines.
2. Anticipating Challenges: With experience comes the ability to foresee common and uncommon project challenges. Seasoned architects can anticipate issues like permit delays, weather conditions, contractor scheduling conflicts, etc.
3. Resource Management: Experienced architects are adept at resource allocation, knowing when and where to deploy their resources effectively. They understand the ins and outs of managing multiple stakeholders, from contractors to suppliers, synchronising every step and ensuring spot-on timelines and budgets.

DOES YOUR ARCHITECT VALUE YOUR TIME: A COST-EFFICIENCY FACTOR

Cost efficiency goes beyond ensuring quality design; it involves valuing your time and investment. Experienced architects leverage their expertise to streamline the design and approval process, thereby saving time and reducing the likelihood of refusals, costly delays and redesigns. This efficiency is crucial in maintaining the momentum of a project, particularly relevant in property markets where timing can influence market entry and revenue generation.

The economic benefits of engaging a seasoned professional include reduced risk of project overruns and minimised potential for expensive mistakes that could require alterations post-construction.

STICKING TO THE BUDGET

Seasoned architects are more likely to deliver projects within budget, regarding the investor’s financial and temporal commitments. They understand the complexities of project management in the property development sector, foresee potential hurdles, and plan effectively to mitigate them. Here’s why seasoned experience matters:

1. Accurate Cost Estimations: Experience enhances an architect’s ability to estimate costs more accurately. They are familiar with market rates for materials and labour, understand where costs can escalate, and know how to leverage relationships for better pricing. This expertise allows them to set realistic budgets that reflect project costs.
2. Cost Control Strategies: Experienced architects have developed strategies over time to control costs without compromising quality. They know how to navigate financial pitfalls by making informed decisions about material selections, design alterations, and innovative technologies.
3. Value Engineering: This method is used by architects to improve the value of a project by examining the function and cost of materials and processes. Experienced architects can apply value engineering effectively to reduce costs while maintaining or enhancing the functional and aesthetic value of the project.

KEYNOTES ON DIFFERENCES BETWEEN ‘CHEAP’ AND EXPERIENCED ARCHITECTS

Investing in professional architectural services is a strategic investment in the future of your property. The benefits of hiring experienced architects are manifold:

• Compliance and Quality Assurance: Ensuring that all aspects of the design and construction meet legal standards and industry best practices.
• Enhanced Property Value: Through thoughtful design that maximises space utility, aesthetic appeal, and solutions designed for sustainability and efficiency.
• Risk Mitigation: Foreseeing and addressing potential issues before they become expensive problems.

By contrast, while the initial fees may be lower with low-priced architectural services, attracting budget-conscious investors, the scope and quality of services can fall short in more than one way:

• Limited Experience: May lack depth in specific project types or regulatory complexities.
• Risk of Design Flaws: There is a higher probability of design inefficiencies or errors resulting from less rigorous processes.
• Increased Approval Challenges: Potentially higher rates of planning refusal or required revisions during the process stemming from limited knowledge of local regulations.
• Long-Term Cost Implications: Initial savings may be offset by the costs of delays, redesigns, and corrections post-construction, potentially leading to budget overrun.
• Overcapitalising: Beyond property improvements, significant costs for reworks and corrections could inflate the total investment beyond property market value.

Checklist For Choosing Your Architect

Recognising the difference between top-tier and ‘cheap’ architectural services is essential for making informed decisions. Ensuring you consider all critical aspects before hiring an architect, this checklist highlights the importance of prioritising quality, expertise, and the long-term of hiring an experienced architect over a cheaper, less experienced alternative. Here’s what to consider:

1. Credentials and Professional Experience

• • Verify the architect’s qualifications and certifications.
  • Check how many years of experience they have in the industry.
  • Look for specialised experience relevant to your project type, especially in HMOs.

2. Portfolio and Past Projects

• • Review the architect’s portfolio to assess the quality and scope of their work.
  • Ask for case studies or references from past projects similar to yours.
  • Find about their success in handling projects of similar scale and complexity.

3. Insurance and Liability Coverage

• • Confirm that the architect has adequate professional indemnity insurance.
  • Check for other relevant insurances like public liability insurance.
  • Ensure the coverage amounts are appropriate for the scale of your project.

4. Regulatory Compliance and Building Codes

• • Assess their knowledge and track record in adhering to local building codes and regulations.
  • Check their history with planning permissions and their success rate in approvals.
  • Ask about their approach to sustainability and energy efficiency standards.

5. Cost and Budget Management

• • Inquire about their method for estimating project costs.
  • Evaluate their transparency in budgeting and cost control.
  • Compare how they handle cost overruns and budget adjustments.

6. Communication and Project Management

• • Assess their communication skills and responsiveness.
  • Discuss their project management tools and processes.
  • Determine their availability for regular updates and meetings.

7. Time Management and Deadline Adherence

• • Review their track record for completing projects on time.
  • Ask about strategies they use to handle project delays.
  • Inquire about their capacity to manage multiple projects without compromising quality.

8. Client Testimonials and Reviews

• • Request testimonials from previous clients.
  • Search for reviews online or ask within your network.
  • Analyse feedback to gauge client satisfaction and any recurring issues.

9. Value Engineering and Innovation

• • Discuss how they incorporate cost-effective yet innovative solutions.
  • Ask about their experience with value engineering in past projects.
  • Evaluate their ability to optimise project design for added value.

10. Post-Completion Support

• • Inquire about follow-up services post-project completion.
  • Check if they provide guarantees or support for resolving potential issues after project handover.
  • Discuss their availability for future modifications or additional phases of the project.

You can get a comprehensive picture of what each architectural firm offers beyond the initial cost. With a thorough vetting process, you can find an architect with the expertise and resources for a successful outcome of your property investment. 

CONCLUSION 

While cheaper architects may offer upfront savings, the lack of experience can lead to prolonged project timelines, increased costs due to unforeseen complications, and a finished product that might not meet expectations or compliance standards.

A well-compensated architect will add value to your project in different ways, attracting better tenants and increasing the value of your property. While it might be a higher expense up-front, the benefits last for the lifetime of your project. Seasoned architects offer other numerous advantages, including a solid portfolio that spans various project types and complexities, and a track of successful applications nationwide.  How crucial is it for you to ensure your property project progresses seamlessly from start to finish?

When you invest in a professional architect, you prioritise long-term success and stability over short-term savings. The right architect will guide you through the complex process of property development and ensure that every decision adds value to your investment, protects your interests, and contributes to achieving your business goals.

To see the difference a quality architectural team can make to your project, check out our project case studies.

At HMO Architects, we are more than just a service; we are your strategic partners in efficiency, reliability, and expert execution. Experience the difference professional guidance makes. Contact us today for a free discovery call to discuss how we can bring your project to life.