Rumah Klasik - Things to Note about Architect and Contractor Costs

For those of you who are planning to build a house, you certainly need to find out the current cost of architect and contractor services. There are many people who are hesitant, or do not dare to use architect services because they do not know the cost of these services in detail. For this reason, the following are some examples for calculating the costs of architects and contractors.

Architect Services Cost Calculation:

Per Square Meter

This is the most widely used formula by architects in Indonesia to provide image design services. Architect charges a service fee based on the area of the building to be made, per square meter. If an architect designs a house with 150 square meters building area, they calculate of the fee based on building area multiplied by architect’s benchmark price per meter. Each architect has different benchmark on price per meter, it varies greatly from tens of thousands of rupiah to hundreds of thousands of rupiah per square meter. 

Percentage of Building Costs 

Some architects offer architectural and contracting service fees based on the percentage of the construction costs. For example, if the house design has been completed, and the construction cost is calculated at Rp. 4.000.000, the architect's rate is 4.78% of the total construction cost. The Indonesian Architects Association (IAI) has actually set benchmarks for the percentage of fee rates. For residential houses with construction costs below Rp.200.000.000, the architect's fee percentage is 6.5% of the total production cost. Whereas for houses with construction costs of Rp.2.000.000.000, the architect's service fee is 5.51% of the total production cost.

All-In Package

This is a complete package which include both architect and contractor service fees. So in this package, the architect is not only provide services in the form of building designs but also work as a contractor that watches the process of house-building. Prices offered for all-in packages varies, depending on the materials used and  building area. With this method, you no longer need the hassle of looking for a contractor.

Contractor Cost Calculation

The calculation of contractor's actual cost depends on the material that will be used to make the building, because the contractor will take a some proportion from the percentage of materials cost. To find out whether the contractor's fees are expensive or cheap is through its tenders, tender is the process of submitting bids from contractors. Expensive or cheap, it depends on  how contractor’s work. Usually a contractor who did a good job and managed to finish on time dare to set expensive fee. So you must see their experience and portfolio before choosing one. Do not be easily tempted by contractors who offer cheap prices.

There are two ways of payment that are commonly done among contractors;  by dividing them into terms, or entrusting your money to be managed by the contractor. Payments with the term system is divided into 4 stages, that is paid according to project development. Before starting the project, you will be asked to pay an advance of 20-30% of the contract value. After that, the contractor will start working. When the process is almost 50%, you must make a second payment. The amount paid in the second stage is 30% of total cost. Meanwhile the next payment which is 20% must be paid when the work has finished 80%. When the building is completely finished, you must pay all remaining fee.