This method for fees is most common for larger residential projects and renovations, usually anything that will require a lot of coordination. There are two ways a designer may charge this way, as a percentage of the total construction cost or using the cost-plus method, which we will get into below.
The percentage of construction cost is the most straightforward. This will only happen on projects where a contractor is involved. Usually, these are projects where an interior designer is designing a space for a renovation and managing the construction process from start to finish. The going rate for this method is 10% to 30% of the construction cost (only the cost of the project itself, not including contractor’s fees, etc.)
The second method is the cost-plus method. Similar to the percentage of construction cost, the designer charges a percentage (usually 10% to 45%) on the total cost of the job. This time, however, that total includes the construction cost, cost of any purchases they make on your behalf and their estimated costs of the time spent on project management. Typically, this won’t be calculated on top of initial design fees.