What type of fee structure is fair to both the client and architect?

The percentage-based fee structure, which is based on the project construction cost, is considered a fair arrangement for both the client and the architect because it aligns the architect’s compensation with the project's scale and complexity. This structure means that as the cost of the project increases due to unforeseen complexities or an expanded scope of work, the architect’s fees may also increase correspondingly. This provides an incentive for architects to manage costs effectively while also ensuring they are compensated for the increased workload and responsibility as the project demands grow.

Moreover, this fee structure establishes a clear expectation for clients regarding how much they will be paying based on their project budget, creating transparency in financial planning. Clients can also benefit from the architect's expertise in how to best allocate their budget for the most critical aspects of the design and construction process, as the architect may be more inclined to focus on cost-saving measures without compromising quality.

Other fee structures, such as unit price, hourly billing, or retainer fees, can have varying implications for fairness and transparency in payment, often lacking the direct tie to the project's success or requiring more finely tuned tracking of hours or specific deliverables, which may not be as easily understood by clients.