Architects play a pivotal role in real estate development, serving as both visionary designers and strategic project leaders. Not only do they conceptualize spaces that are functional and beautiful, but they also make sure those designs meet zoning laws and building codes.
Whether you're a developer working to bring new housing to the market or a private homeowner designing a dream home or rebuilding after a disaster, selecting the right architect can make all the difference. A skilled architect converts your vision and lifestyle into a design that reflects your goals while collaborating seamlessly with your general contractor (GC), engineers, and permitting authorities to keep your project on track. The wrong architect, on the other hand, can cause design setbacks, costly revisions, and compliance issues that slow progress.
To help you make an informed decision, the expert team at Gatsby Investment has put together a comprehensive checklist for hiring an architect. From credentials and experience to communication style and contract terms, this guide will walk you through the essential factors to consider, so you can hire your architect with confidence.
1. Licensing
Before hiring an architect (or even interviewing them), make sure they have a valid state license to practice as a professional. This licensure confirms that they have met the educational requirements to be an architect and have demonstrated knowledge of the principles of architecture through state-mandated testing.
Each state has its own Architectural Licensing Board. For example, in California, architects are licensed by the California Architects Board (CAB) under the Department of Consumer Affairs (DCA). Most states, California included, follow similar standards aligned with national guidelines set by the National Council of Architectural Registration Boards (NCARB).
In most states, you can confirm that an architect is licensed and check for any professional violations using an online license look-up portal. Californians can use DCA’s online portal.
Checklist items for confirming licensing:
- Has a valid state license.
- Does not have any violations noted on their license.
2. Insurance
Professional architects should carry professional liability insurance (also called Errors and Omissions, or E&O insurance) and general liability insurance. If they have employees, they should also carry workers’ compensation (workers’ comp) insurance.
Professional liability insurance protects you, as the property owner, against damage that could result from errors, omissions, or professional negligence. For example, if your architect overlooks a building code, you can file against this coverage for financial remedy. General liability insurance covers injury or damage to property caused by the architect or their team. Workers’ compensation coverage protects against any work-related accidents that injure the architects' employees.
Ask your architect candidates for proof of insurance and follow up with the insurance provider to make sure it’s active.
Checklist items for confirming insurance:
- Has proof of professional liability insurance (E&O insurance).
- Has proof of general liability insurance.
- Has proof of workers’ comp insurance (if they have employees).
3. Experience and Expertise
An architect’s expertise should go beyond design to include construction, permitting, and collaborating with contractors.
Focus on local architects who have experience completing projects similar to yours in terms of size and complexity. Architects who have been practicing locally for many years will have a better understanding of zoning laws and building codes that apply in your area, as well as securing permits from the city for building.
Candidates for your architect position should be able to provide a portfolio of completed projects for your review, as well as testimonials from satisfied clients. You can also explore online reviews and research any complaints on consumer advocacy sites like the Better Business Bureau (BBB) and TrustPilot.
Checklist items for confirming experience:
- Has been working in your local market for at least five years.
- Has experience designing projects like the property you’re building.
- Has glowing reviews from happy clients.
- Any negative reviews or complaints have been resolved.
4. Collaboration with You, Your GC, and Other Contractors
A good architect knows how to work with others. Their most important relationship on the project should be with you. They should be open to hearing all of your goals and ideas. And they should be able to balance square footage limitations, cost, and potential return on investment with aesthetics to bring your vision to life.
Ask about buildable square footage to make sure the architect doesn’t try to “max out” the land by building as large as possible but instead balances size with costs and limitations. This shows a willingness to be collaborative and realistic about your future on the property, rather than simply building a design showpiece for their own portfolio.
Architects also need to coordinate with your GC early in the process and remain in close communication throughout construction. Collaborating with your GC can help the architect confirm the feasibility and cost-efficiency of the design.
Checklist items for confirming collaboration:
- Present some of your ideas to see if they are taken seriously.
- Ask if the architect has worked with your GC before (you should also ask your GC about architect candidates).
- Ask the architect about any problems they’ve had with other contractors to uncover potential collaboration issues.
5. Permits and Progress Reports
While most permits are technically secured by your GC, your architect plays a key role in earning those permits by creating the designs the permits are based on.
Ready-to-issue (RTI) permits are particularly important for architects. RTI permits are preliminary permits confirming that the design plans have been approved by the permitting authority and the project has a green light to move forward. This is critical because developers have a limited timeframe to start construction once RTI permits are issued. So your architect needs to work closely with the GC to make sure construction is ready to begin shortly after the final plans are submitted for approval.
Getting from initial design to RTI is a process. It often involves multiple design submissions, with revisions to appease the permitting office. So, choosing an architect with RTI experience is critical.
Additionally, the architect should be able to communicate regularly and clearly with you regarding the status of the designs moving through the approval process.
Checklist items for confirming permits and progress reporting:
- The architect will be responsible for creating design plans that earn RTI permits.
- You’re happy with the planned method of communication for reporting progress toward RTI.
6. Payment Schedules
Architects typically charge a percentage up front to begin work. While the payment schedule can vary by location and individual architect, it’s common to pay a 10-20% deposit or retainer upfront. After that, they are paid at development milestones.
For example, an architect may earn more of their total fee once the initial concept design is complete, then more of their fee once the schematic design is complete, more of their fee once the RTI permits are issued, and the final payment of their fee once their job is complete.
When discussing payment schedules, be sure to clarify that you expect:
- An itemized breakdown of all pre-construction and construction costs. Pre-construction costs include feasibility studies, architectural fees, and permits. Construction costs for architects include plan clarifications, RFI (request for information) responses, and site visits.
- A list of vendors required to complete the project, including engineers, inspectors, and designers.
- A clear understanding of permit costs and estimated timelines.
Checklist items for confirming payment schedules:
- The upfront payment is reasonable.
- You agree with the proposed payment schedule.
- Your final payment is not due until their job is completed to your satisfaction.
7. The Contract
The contract between you and your architect should clearly outline the architect’s responsibilities and the payment schedule.
It should include:
- The scope of services (what the architect is responsible for, including confirmation that the architect is responsible for getting their design to RTI).
- An itemized breakdown of costs.
- A timeline that includes deadlines for deliverables and corresponding payment schedules.
- Confirmation that the architect is properly licensed and insured.
- A termination clause, in case either party wishes to terminate the agreement before completion.
Checklist items for confirming the quality of the contract:
- The contract includes all items listed above.
- Terms are written clearly and concisely.
- The contract is signed by your architect.
When to Work with a Full-Service Development Team
If hiring an architect feels a little overwhelming, especially on top of hiring a general contractor and all the other individuals it takes to develop a property from the ground up, consider working with a full-service development team instead.
Full-service developers take care of everything from design through construction. This turnkey development solution is ideal for homeowners building their dream homes, homeowners rebuilding after a disaster, or real estate investors who want to grow their portfolios without handling the details of their investment projects.
Gatsby Investment, a California-based real estate company, offers built-for-you single-family developments for homeowners and investors as well as built-for-you multi-family developments for sophisticated investors. With our long-standing relationships with the best developers, GCs, architects, and designers in the Los Angeles area, and we’re happy to put our team to work for you!