THE 8 SERVICE PHASES OF THE FEE STRUCTURE FOR ARCHITECTS AND ENGINEERS (HOAI)* – CLEAR AND SIMPLE
The Fee Structure for Architects and Engineers (HOIA, Honorarordnung für Architekten und Ingenieure) is a set of legal rules and regulations to determine fees. The current version in effect is from 2021. It is applicable for certain chargeable costs for the various engineering professions related to construction work.
To calculate a fee for buildings or interiors, a number of components must first come together; these are:
Services phases: In actuality there are nine service phases in the HOAI fee structure, but the ninth service phase only occurs several years after the construction work has been completed. It involves the verification/ review of warranties before their expiry. Usually, this phase is not included in the commission and frequently also completed by the client themselves. Therefore we will explain eight services levels.
Chargeable costs – are initially calculated based on a cost estimate, later on using cost accounting and form the basis for fee determination. The allowable prorated part of the existing structure that is to be included in the project work may also have to be considered.
Fee range – is allocated by means of a list of objects. In the domain of cinema design, generally Zone IV and sometimes Zone V can be assumed.
Fee rates – are usually set at the lower, upper or medium fee rate level, depending on how the entitlement to service/ performance is allocated within the fee range; however quarter or three-quarter rates may also be stipulated.
Fee supplement – is charged for redevelopment or modernization, i.e. services that are more challenging from the outset than e.g. a new building. For an average degree of difficulty the HOAI Fee Structure for Architects and Engineers stipulates a 20 % fee supplement.
Ancillary expenses – can be charged based on expenditure/ receipt or according to a flat rate, or a combination; these include e.g. expenses for CAD, printer, copier, scanner, telephone, email, data storage devices, travel and/or accommodation expenses, etc.
Value added tax (VAT) – is prescribed by law and currently amounts to 19 %, applicable to fee and ancillary expenses.
Below you can find out what we do in the individual services phases, and/or could additionally be done by us.*HOAI 2021 = Honorarordnung für Architekten und Ingenieure