When a homeowner knows they need a landscape plan drawn up for their yard, they will engage perhaps a fee based landscape designer. Any professional designer/contractor will usually ask the homeowner for a budget or perhaps a range.
Establishing a budget before you are educated as to how much things costs may be difficult at first, but most homeowners use the industry standard of offering the "free estimate" to get an idea of costs. This so called free estimate, which can take the form of an actual quote, bid, proposal or simply an initial meeting where costs are discussed in ballpark figures will help establish a budget.
However, a homeowner may not have gone through the process and so typically, a homeowner's response to the designer's question of how much is your budget, will respond in several ways:
1. Will state they have no idea and that they do not know what things cost (they may believe that is the purpose of the free estimate - to educate them about what things cost so that they can then arrive at a budget)
2. They do have a budget in mind but do not reveal it assuming the company will spend the whole budget even though the cost may actually be provided for less.
3. They say they have no budget and will spend whatever it costs.
4. They will state their needs and desires and then follow up with a budget that is unrealistic based on what they want.
5. They will not state a budget, but instead ask the designer/contractor to give them a ballpark cost on the spot and usually state that they will not hold you to it.
The last response is the most difficult for the company since both parties are trying to arrive at some mutual agreement about what the budget should be. If the contractor throws out a figure that turns out to be lower than a formal proposal, the homeowner can use that as leverage for expecting a lower number. If the contractor throws out a much higher number, they may be labeled as expensive provided the homeowner has previously talked with other companies and received lower ballpark estimates.
A homeowner who is going through the process of "interviewing" several contractors and getting "free estimates" and or "bids" is not limiting their evaluation to the lowest bid. There are many other factors the homeowner is assessing while going through this process. But the question is, should the homeowner pay a fee to go through this process if the "bid" requires significant time and creativity to develop a thoughtful design upon which the costs can be accurately determined compared to an "off the cuff" ballpark estimate?
It will be up to the individual contractor to determine if they should charge a design fee to prepare a proposal. They could end up working for free, providing valuable design ideas and solutions and never get the job.
The most reasonable way to handle this is for the company to require some kind of design fee that would be credited towards the construction contract. That way, the design/free estimate is prepared with sufficient detail where assumptions are not made, materials are specified and the input of the homeowner is reflected in the design to make it truly custom.
What I have learned over the years as a designer and as a contractor, what the client wants is the finished project. Sometimes, if that project requires a design to be prepared, then a design fee is usually charged if the complexity and time involved is justified. Other projects are straightforward and can be put on paper in the form of a design without a lot of time being spent. In this case, the design/plan is prepared to show the homeowner the layout and how the spaces relate to the property.
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