How NOT to quote a fee

A while ago I approached an architect to design a renovation on a property.

After discussion we were told by the architect that we could get what we wanted for $1M. That wasn't the actual figure but I'm just using a nice round figure to make things simple. We agreed but then, almost immediately, got a nasty surprise.

The contract arrived and it turned out the cost was going to be $1M plus the architect's fee (10%) plus GST (another 10%). We were $200,000 over the agreed budget and we hadn't even started.

We told the architect that we wanted an all-inclusive fee.

Contract version 2 arrived with the GST and his fee included but stating that we would need to hire a bunch of consultants (engineers, heritage, soil, landscape etc. etc.). No estimates of those costs was included. Annoying.

The architect was rapidly eroding our trust in him.

Here's my advice to you in order to maintain maximum trust with your patients:

1. Quote all-inclusively. Don't leave things out. It will make patients angry if you start adding things, like x-rays, after you have given patients their quote.

2. Build in contingencies. It's better to over-quote then charge less than you said. If you under-quote, then charge more than you said patients will get angry.

Telling patients the fee is simple if you stick to those rules.

That way when you quote for a crown, there will be no surprises. Patients (and I!) don't like surprises.

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