COST OF ARCHITECTURAL DESIGN FEES EAST AFRICA-HOTEL PROJECT
Architectural design fees are regulated by CAP 525 of the Laws of Kenya.
The minimum amount of fees a Registered Architect should charge is 6 % of the total cost of the construction project.
The cost of the construction project is estimated by a Quantity Surveyor based on the average cost of construction per meter squared currently.
The actual cost of construction is the total tendered sum that a contractor has agreed as per contract to build the building.
1. Outline proposals 1% of total construction cost
2. Scheme design 1.5 % of total construction cost
3. Detailed design and Production drawings 2 % of total construction cost
4 From Tender Action to Completion [supervision] 1.5 % of construction cost
TOTAL-6% of construction cost
5 STAR HOTEL
Assuming a 5 star hotel project with
100 rooms-25m2 per room x 100=2500 m2,
2 restaurants-200m2 per restaurant x2=400m2,
2 swimming pools- 400m2,
tennis court 400m2,
conference hall -500m2and
staff quarters 600m2,
TOTAL BUILT UP AREA=6,200m2
Construction costs are KES 50,000[USD 625] per m2[East Africa] or KES 80,000 [USD 1,000]per m2[Dubai].
Estimated construction costs will be KES 50,000[USD 625] X 6,200m2 = KES 310,000,000[USD 3,875,000].
The current single room rates for Hotels in Zanzibar are as follows
1. The Zanzibar Serena 347 Euro per night
2. The Z Hotel- I62 USD per night
3. Blue Oyster Hotel 65 USD per night
4. Tamarind Hotel-75 USD per night –low season
5. Breezes Hotel 80 USD per night
Assuming a rate of 70 USD per night for 100 rooms on 50 % occupancy rate, this will be 70 USD x 100 rooms =7000 USD x 50% =3,500 USD per night [KES 280,000]
Assuming a profit of 20 USD per person o food, sauna, swimming pool, this will be 20 USD x 50 people = 1000USD [KES 80,000] per night.
TOTAL income per day is 3,500 USD + 1,000 USD = 4,500 USD.
Total income per month =4,500 USD X 30 = 135,000 USD [KES 10,800,000]
Total income per year = 4,500 USD x 256 days = 1,642,500 USD [KES 131,000,000]
At an estimated construction cost of KES 310,000,000 [USD 3,875,000], this project will return its initial investment in roughly 3,875,000 USD divide by 1,642,500 USD =2.3 Years****.[detailed feasibility study conducted by www.a4architect.com required].
RETURN ON INVESTMENT
Therefore, this project is viable and will return its initial investment within a period of 2.3 years.
As a rule of thumb, any project that returns its initial investment in a period of less than 10 years is a good deal.
The fees will be as follows:
Cost of construction = KES 310,000,000[USD 3,875,000].
Total Architectural fees= 6% x KES 310,000,000[USD 3,875,000]. =KES 18,600,000[USD 232,500].
Interior design fees: =3% of total construction cost=USD 116,250
Other consultation fees include:
Structural Engineering fees 3%
Quantity surveying fees 3%
Electrical Engineering [Building Services e.g. lifts, electrical wiring]] fees 2%
Mechanical Engineering [Building Services e.g. air conditioning, lifts, kitchen] fees 2%
A project of this magnitude will take approximately 18 months to complete.
Fees are paid as the work progresses whereby the Architectural services are rendered for a particular stage then the invoice is raised to be paid by the Client on completion of the stage through out the construction period.
Francis Gichuhi Kamau