How to price house plans by the square foot

My dad has drawn custom homes on his own for about 30 years, finishing 20 to 40 projects a year. Most of his clients are homeowners building new or remodeling. This is how he prices that work. It isn't the only way to do it, but it has held up for a long time, and clients understand it on the first call.

Charge per square foot of heated living space

He charges a fixed price per square foot of heated living space. His basic package is $2 per square foot, and it includes colored exterior elevations. Higher packages cost more per foot and add 3D views of the exterior and interior.

So a 2,000 square foot house on the basic package is a $4,000 job. The client can do that math on the spot, which is the point: there's no estimate to argue over and no surprise at the end.

Garages, porches and unfinished basements aren't heated living space, so they aren't in the number. Say so up front and put it in the contract.

Why not hourly

His view is that hourly billing punishes you for being good. The faster and more experienced you get, the less you earn for the same house. A fixed fee does the opposite: getting better means the same fee for less time.

It's also easier on the client. They know the price before they sign, and they never wonder whether a phone call is on the clock. He does still bill hourly for a few jobs that don't fit the mold, such as drafting for another architect, where an invoice for time makes more sense.

Get paid in three parts

1. A retainer at signing. He takes $1,000 to $1,200, non-refundable, usually at the first site meeting. Nine times out of ten the client signs and pays right there.
2. Half of what's left when the bid set goes out. The bid set is the stripped-down set builders need to price the job.
3. The other half when the final plans are delivered.

On the $4,000 house: $1,000 at signing, $1,500 with the bid set and $1,500 with the finals. He doesn't send invoices to homeowners. He tells them to bring a check when he delivers, and he sends the finished PDF once it's in hand.

Unlimited revisions, until the scope changes

Revisions are included, as many as the client needs. The line is scope: if a 2,000 square foot ranch turns into a 2,500 square foot two-story, it's a different house, and the fee changes with it.

Remodels and additions are quoted

Square-foot pricing fits new homes. Remodels and additions vary too much, so he visits the site first and then writes a quote for the job.

Where money slips

Homeowners almost never fail to pay. The money that gets lost is small side work for repeat clients and builders: a concept sketch here, a quick change there, done as a favor and never billed. Write those down the day you do them, even if you bill them later.