Is it typical for the contractor to charge a design fee?

Dear Bill,
I found your "confessions" to be very informative and
I am glad I bought your book.  I just read it and will
probably reread several times during my project.
I am currently in the process of getting bids on a
20 x 14 Family Room addition (based on your book I might
change it to 20 x 16.)
My initial estimates look to be about $50,000 which
seems right.  Is it typical though for the contractor
to charge you a design fee of $800 that is included in
the estimate but the design does not become your
property if you choose not to move forward with the
contractor?
Thank You,

Sharon


I am not quite sure what you mean. If he charges you $800 for the design & estimate, then keeps the drawing no it is not typical.

Tell him to take a hike.

It is typical for the contractor to keep any drawing unless he sells you the job. He did it & it remains his property since you did not pay for it.

If he says there is an $800 design fee built into the price he's
probably telling a little fib trying to make you think his design is worth $800.

Whatever preliminary work & drawing he does is not worth $800.
Somewhere in his price is a dollar value for his time & effort to do the estimate. That dollar amount will vary with contractors. If I valued my estimates & drawing.

At $800 I wouldn't be so quick to tell you that kind of number. I really don't think he's smart to present it that way.

Suppose he said "My commission on this sale will be $$2000 & i'm including it in my estimate". Would you consider that comment a smart selling point?

Try this:
If you say to him "Here's a very raw preliminary drawing of what I want to do. Maybe you can help me put in all the finishing touches & come up with an estimate before you do any drawings."

Then no one has a reason to include the $800 dollars. Once he knows the size & shape & the details of the
addition he can do an estimate in a few minutes at the computer - without any drawings.

Hope this helps. (Thank you for the compliments on my book)

Regards,

Bill Harbrecht