# Cost plus fee NOT a common architectural fee structure

**URL:** <https://community.blackspectacles.com/t/cost-plus-fee-not-a-common-architectural-fee-structure/7202>\
**Category:** Practice Management\
**Created:** [July 13, 2025, 3:01pm UTC](https://community.blackspectacles.com/t/cost-plus-fee-not-a-common-architectural-fee-structure/7202 "2025-07-13T15:01:50Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![avatarlucas](https://blackspectacles.com/uploads/images/22.png) [@avatarlucas](https://community.blackspectacles.com/u/avatarlucas)\
**Post date:** [July 13, 2025, 3:01pm UTC](https://community.blackspectacles.com/t/cost-plus-fee-not-a-common-architectural-fee-structure/7202/1 "2025-07-13T15:01:50Z")

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In practice exam 2, I was asked a question about typical architectural service fee options and I was surprised to read that Cost-Plus-Fee is " a common fee structure used by contractors, but not by architects" and was hence marked incorrect.

In the Architectural Handbook for Professional Practice, Pg. 622 it states:  
"The following are common compensation options for fee calculations that begin the budgeting process formally in one’s accounting system after the contract is signed:  
• Lump sum fixed fees.  
• Hourly with no upset based on hourly billing rates.  
• Hourly-not-to-exceed fees based on hourly billing rates.  
• Cost plus fixed fees.  
• Unit cost pricing.  
• Percentage of actual construction cost.  
• Reimbursable and non-reimbursable direct costs are considerations in all options.

So which is it? This seems to me like a bit of a catch question on purpose.  
@coachchrishopstock perhaps you can help?

Thank you

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**Author:** ![coachchrishopstock](https://yyz1.discourse-cdn.com/flex029/user_avatar/community.blackspectacles.com/coachchrishopstock/32/1662_2.png) [@coachchrishopstock](https://community.blackspectacles.com/u/coachchrishopstock)\
**Post date:** [July 13, 2025, 10:44pm UTC](https://community.blackspectacles.com/t/cost-plus-fee-not-a-common-architectural-fee-structure/7202/2 "2025-07-13T22:44:48Z")

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Hi @avatarlucas -  
thanks for writing in! This isn’t meant to be overly tricky on our part; there’s just an error in AHPP here. There are a few known errors in the book.

Cost plus fixed fee is common for contractors - they charge the cost (the actual cost of the work, i.e. materials and labor) plus a fixed fee for their efforts, to cover their OH&P.

How could an architect create a similar fee? what would the ‘cost’ be? It makes sense for a contractor - it’s simply the cost of the work. Similarly, what would the ‘fixed fee’ portion be? It just doesn’t make a lot of sense for an architect to develop a fee this way.

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**Author:** ![avatarlucas](https://blackspectacles.com/uploads/images/22.png) [@avatarlucas](https://community.blackspectacles.com/u/avatarlucas)\
**Post date:** [July 18, 2025, 6:19pm UTC](https://community.blackspectacles.com/t/cost-plus-fee-not-a-common-architectural-fee-structure/7202/3 "2025-07-18T18:19:09Z")

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Thanks @coachchrishopstock

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**Author:** ![wjmarrero](https://blackspectacles.com/uploads/images/26.png) [@wjmarrero](https://community.blackspectacles.com/u/wjmarrero)\
**Post date:** [September 17, 2026, 11:39am UTC](https://community.blackspectacles.com/t/cost-plus-fee-not-a-common-architectural-fee-structure/7202/4 "2026-09-17T11:39:52Z")

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Hello,

If true, then there is an error with question number 5 of the Applying AIA B101 Contract Revisions [Exercise A] Real-World Scenarios. It asks: “Which billing structures are most appropriate for this project? **Check the two that apply.”**

 ![image](https://canada1.discourse-cdn.com/flex029/uploads/blackspectacles/original/2X/5/5cad98fa163ffd022a5c6e45dfca3f2c9e2e2088.png)

Thanks,

Wilfredo