The fee proposal that holds its price
A fee proposal is not a price list. It is the first document in which a client sees how you think, and the way it is structured decides whether the fee is discussed or defended. This playbook covers the structure, the three option method, what to say when a discount is requested, and the regional details that catch studios out.
26 September 2026 · 10 minute read
In this playbook
- A seven part proposal structure you can reuse on every project
- The three option method, with wording
- A reply for the discount request that trades scope instead of margin
- Stage and payment notes for the US, the UAE and India
Lead with the outcome, not the percentage
Most proposals open with the fee. The client reads a number, compares it to the last number they saw, and the conversation becomes about the number. A proposal that opens with the client's own project, described better than they described it, starts a different conversation: about whether you understood them.
The fee belongs on page two or three, after the reader has seen that you grasped the brief, that the scope is specific, and that what is not included has been said out loud. By the time they reach the number it is attached to something concrete.
The structure that holds
- Your understanding of the brief, in the client's own terms: site, family or business, what has to be true when the building is finished.
- Scope, stage by stage, with the deliverables at the end of each stage.
- What is not included, written as a list, not buried in a paragraph.
- The fee, and exactly how it is calculated.
- The payment schedule, tied to dates or stages.
- Assumptions and how long the proposal is valid.
- The next step, with a date.
Parts three and six do most of the work. The exclusions list is where you prevent scope creep before it starts, and the assumptions are what let you revise the fee later without an argument, because the client agreed to them in writing.
This fee assumes a single residential building of approximately [area] on the plot at [address], two rounds of design revision at each stage, and authority submissions as a single application. Changes to any of these will be quoted before work proceeds. This proposal is valid for 30 days.
Offer three options, not one
A single number invites a yes or a no, and the no often arrives as a request for a discount. Three options invite a choice between them. Most clients choose the middle one, and the conversation is about which level of service they want rather than whether you are too expensive.
| Option | What it covers | Who it suits |
|---|---|---|
| Design and approvals | Concept through authority approval, drawings for tender | Clients with their own contractor and project manager |
| Full design | Everything above, plus detailed design and tender support | Most private clients |
| Design and delivery | Everything above, plus site supervision through to handover | Clients who want one team accountable to the end |
We have set out three ways of working together. Most clients building a home choose Full design, because it takes the project through to a contractor with complete drawings. Design and delivery adds our team on site until handover, which clients who are abroad or short of time usually prefer.
Choose how the fee is calculated, deliberately
| Method | Works well when | Watch out for |
|---|---|---|
| Percentage of construction cost | Scope is standard and the budget is realistic | Clients who cut the budget later expect the fee to fall with it |
| Fixed fee per stage | Scope is clear and you know your hours | Undefined revisions, so pair it with a revision limit |
| Hourly with a cap | Scope is uncertain, early studies, existing buildings | Clients who watch the meter; report hours monthly |
Whichever you choose, show the working. A fee that is visibly built from stages and hours is harder to argue with than a single figure, because the client can see what a reduction would remove.
When the client asks for a discount
Never reduce the fee for the same scope. A discount comes straight off your profit, not your revenue, so ten per cent off the fee can remove a much larger share of what the project actually earns you. The fee discount article works through that arithmetic line by line.
Instead, trade scope for fee. Offer the lower option, remove a stage, or reduce the revision rounds. The client gets a lower number and you keep a project that still pays.
Thank you, I understand the budget is tight. Rather than reduce the fee for the same work, which would mean cutting corners somewhere, we could bring it to [lower figure] by [taking site supervision out / reducing to one revision round per stage]. That keeps the design quality where it should be. Would that work for you?
Put the payment schedule inside the proposal
The payment schedule is not an afterthought for the contract. It belongs in the proposal, where it is agreed alongside the fee. A retainer on signing, then payments tied to dates or stage completions, is standard across all three markets and protects your cash flow from the start. The getting paid playbook sets out the full schedule and reminder sequence.
Regional notes
- United States: clients expect the familiar phase names of Schematic Design, Design Development, Construction Documents, Procurement (often still called Bidding) and Construction Administration. Many studios base the agreement on the AIA B101 owner and architect agreement; say so in the proposal if you do.
- UAE: set out authority and consultant fees separately from the design fee, and say clearly that they are paid by the client. Clients comparing proposals often do not realise one quote includes them and another does not. The Dubai cost article covers what sits on top of the design fee.
- India: the Council of Architecture publishes a Scale of Charges, and many clients will have seen quotes below it. Refer to it in the proposal as the professional reference and explain your stages against it. The COA article explains how the scale actually works.
The checklist before you send
- Does page one describe the client's project better than they did?
- Is every stage listed with its deliverables?
- Is there a written list of what is not included?
- Is the fee shown with its working, not as one figure?
- Are there three options?
- Is the payment schedule in the proposal, with a retainer on signing?
- Are the assumptions and validity period stated?
- Is there a next step with a date?