How Much Should Design Cost?
by Lloyd Alter, Toronto
on 08.11.08

The architectural profession is broken in the single-family house biz; the vast majority of people live in houses that were built by developers from generic plans. The number of houses designed by architects to suit the needs of specific clients is negligible. It is also expensive; a small house can take as much time to design as a very big one, and as much time as a much more profitable commercial job that doesn't require client meetings on evenings and weekends.
It is the reason so many architects (including myself) fell in love with prefab; it would make architecture more like industrial design, where the cost of development would be spread over a number of units, and where a design could actually be prototyped and refined as it was produced. But prefab needs factories, installation trades, and a service infrastructure that is not yet widespread.

Smartbox by Freegreen
Another approach to making good green design available to a larger audience is through stock plans, where architects licence the use of their designs for clients to build themselves or with a builder. You can go to any bookstore and see a whole rack of plan books, and go online and see thousands of them. Most people buy the plan book but not the plan; the ripoff rate is unknown, but I cannot count how many prospective customers came to me with them when I was working in prefab, and I suspect it's up around 90%.

Smartbox Kitchen
That is why I was so intrigued by FreeGreen, the new company that gives away the plans; to use the expression from ten years ago, "information wants to be free"- why pay for it if you can steal it. Yet coincidentally with David Wax and FreeGreen offering their plans for the price of exactly zero, modern green stock plan pioneer Greg Lavardera has tripled the price of his. What is going on? I asked David Wax of Freegreen for his opinion, and he sent me a long, thoughtful response which I repeat herein:
interview with David Wax. I apologise for the lousy quality
1) I think that the trend of architects moving towards higher plan prices is really a filter. These architects are filtering clients for very different reasons. Some are filtering clients because they are tired of having there design changed. The concept here is that if you charge more then the client is less likely to alter and\or ruin your design. Some are using this filter because they believe that when design is more expensive people are less likely to steal it (more people steal baseball cards than diamond rings). To be honest, I am not sure that I agree with that, but it is an idea. I am worried that a $15,000 item that is really easy to steal might be just too tempting for some folks.
2) I think that for branded or semi-branded architects this concept of moving up the food chain makes individual sense. Said another way, if you can differentiate your self and your designs you will probably make more selling them for $10K then for $750
3) This is the way that the paid version of the home plan market has to go. With a 50% theft rate and folks like CoolHousePlans pushing plan prices down to $500 per plan, the better designers had to find a way to make this work for them. Charging significantly more for plans is exactly the right answer for established plan designers. For the young or not established designers this does pose a problem. That is where FreeGreen Open Source Program comes in. We will give them a haven where they can make real money, get their name out, and if they are good enough make it to charging high fees for their plans (like this new trend).
4) The creation of this “High End” home plan design does a number of interesting things in my mind:
a. It creates a massive void of people that can no longer afford plans from these architects. Assuming that these High End plans are a trend, this means that the best designers will move out of the financial reach of the mainstream. That is exactly where FreeGreen comes in. We are happy to serve this market (which by the way is about 80% of the population). We focus on them, cater to them, and become their singular answer for great green design and good value. There will always be a High End and Low End in any market. This new expensive plan model will allow plan developers to enter High End, but also creates an enormous opportunity for FreeGreen.
b. It creates two losers. The biggest loser is Eplans, CoolHousePlans, etc. On one side they have Higher End plan sites like Houseplans.com pushing up the prices and quality of their designs. On the other side they have FreeGreen giving away great plans for free. They are now stuck in the middle arguing that their $750 plans have more value than FreeGreen free plans, but are still affordable unlike the branded house plans. This is not a good place to be. The second loser could be the low end or small custom design market. If consumers can get a branded house plan for less than a no-name local custom architect they may go for it. Now this is not true across the board. Most people that hire custom architects, hire them because they want a house that fits them, no matter what the price. But, on the margin is where the little firms play and this could be a problem.
In summary I think that there is a place for these High End plans, and for those that can pull it off, I think this will be a good business (if they can avoid or stop rampant stealing). From a FreeGreen strategy perspective this is all great news. The filtering of clients by great home plan designers expands FreeGreen market and potential market share. This expansion gives us the growing market that we need to convince our vendors that we can successfully promote their product.
Interview with Greg Lavardera
Greg Lavardera notes on his website that he has switched from selling his plans directly, but is now working with Houseplans.com. "This is part of an effort elevate the level of design offered in the form of stock plans, not only modern houses, but of all styles. This has been a goal of mine since starting this venture, and for the first time in the leadership at Houseplans.com I have found a similar vision. They are committed to marketing better designed home plans in a different way - a way in which design is more important than square feet, or bedroom count. The offering that they will assemble will completely out-class the offerings of other vendors and it is my sincere hope that this brings pressure to bear on them to improve their game. The end result, I hope, is the enlightenment of the buying public to better design, the creation of demand for better designed homes, and the inevitable move of the market to fill that demand. End game - better designed homes readily available for everyone, particularly for my camp of modernists."

I have always thought that the industrial design model, where the designer gets a royalty for each product produced and sold, made a lot more sense than trying to make every house different and get a full fee for every one. But like so much available on the internet, so much of it gets stolen. Greg Lavardera has differentiated his product, so that there is added value to the consumer, but which of the three models has the best future: Free? $ 4,500 for a stock plan? $ 15,000 for a one-off?
More on Plans on TreeHugger:
Free Green Turns House Design Business On Its Head
Click Your Way to Greg Lavardera's Modern Stock Plans
You Too Can Own a C3 Cabin by Vandeventer+Carlander Architects
Prefab : Green or Greewashing?
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From my perspective as a green contractor,here in the mountains near Yosemite national park.Every building site is very unique,and to design and build a really awesome site specific home you must have the designer visit the site,perhaps several times,it is ok to get plans and ideas off the internet,but they almost always have to be modified to take advantage of customers needs and site conditions.We charge $3 a square foot to design and get the plans through the building department here,and getting the plans,energy calculations and engineering to pass is the hardest part,belive me we earn the money!
I am attempting to design my green retrirement home. I loved this article because it shows a different perspective architecture. I only wish there was a site where lay people like myself can pose architectural questions and get free to low cost advice on if my ideas are feasible and cost effective or not.
Yet, a well designed building lasts centuries.
I can't imagine myself seeing true masterpiece buildings disappearing never. Sometimes an architect hits the spot and does the best house for its placement. That's one of the things that make designing in architecture so beautiful.
I don't get it!
Let alone the fact that indeed each individual has and needs individual adaptations, the bigger question to me is, what about the contextual considerations, which are unique to each site, careful consideration of which are the basis of a building's ultimate performance.
Isn't the idea of ' green design' exactly the whole idea that it is unique and not a copy of someone else's design? Surely what is a ' green design ' on one site , would not apply to another site(orientation neighbouring structures, different climates etc, other material availability and local challenges differ from place to place and site to site). To me, this defeats the purpose of REAL green design, where one size hardly ever fits all: it HAS to be site specific and conceived with the specific context in mind - otherwise what's the point? Or will each plan come with instructions where it would be suitable to build? I don't think this is feasible. And then we end up with supposedly green houses when only the original plan ever was, not its later copies. And than I am not even getting started on the fact that I'd rather all of our streets wouldn't look the same either,....
I agree with the above comments that site specific design is crital to be get the best building for a particular site.
An issue that wasn’t addressed in the article is that of liability. When you pay an architect for plans you’re playing for his license as a professional, he is held personally responsible that the building will be safe and designed to meet, at the minimum, all building codes. Architects are required to hold lots of insurance in the event something they designed fails and there isn’t a statue of limitations, if something an architect designed fails 20 years later they are still held accountable. I’m sure this figures in to the cost of design as well, unfortunately people love to sue and that’s probably not going to change anytime soon. I don’t know who is taking the liability for the plans people steel out of a book but I wouldn’t want to be them.
I visited the site and it is not completely FREE. You are asked to give a donation and then you must pay $60. I know this isn't comparable to other sites but they aren't exactly what they say they are. If you are like me, you want to collect as much info about green design on a budget. I am a college student and just want some free information.
I don't know about this. It throws the market for good design out the window and makes it hard for competing quality designers to get paid. Also, with no fees for plans, who is paying for the engineering?
You get what you pay for.
Residential design in the United States is interesting in that liability is usually limited to the contractor or builder, that is, most municipalities do not require a registered architect or designer to have stamped, signed or sealed drawings for residences under 4 connected units. This poses the question, do you want a personalized, thoughtful and successful plan or do you want one designed for the lowest common denominator? There is a reason that people are trained in designing spaces for human habitation. If one is looking for the cheapest solution there are plenty of mass produced development housing currently on the market. Purchasing pre-drawn plans may create a library of ideas from which to draw inspiration, however it is the act of having a solution tailored to your personal situation/region/context that may result in not only having a house, but also a home.
Hello All,
My named is Dave Wax and I am the CEO of FreeGreen. I would like to address some of the comments above:
1) Our plans are FREE to download. In this download you get full construction documents, a energy report predicting the homes energy usage for your location, a LEED-H Checklist filled out where possible, and more. The $60 charge discussed above is if the user wants to order prints from us which is NOT required. You can easily download the plans and have them printed locally.
2) We do ask for donations (they are not mandatory) today because we are starting out. We have a very new business model and are giving away plans that would cost $1,000's of dollars on the open market (per the article). As we grow our different revenue streams we will remove this request.
3) On the site orientation issue we couldn't agree more. This is key to any "green" home. The reality is that to get this type of information you typically have to hire a custom architect (or a very educated\expensive builder). The average home in the US costs $250,000 to build and there is no room for a custom architect’s fee. House Plans have typically filled this void in the market. We are giving users the ability to take the first step towards having a "green" home for free. We also offer our customization services (for a fee) to help them make their home fit their lot. Bottom line for about $1,500 in total (including average customization fees) our users can get a great, energy efficient design which is customized for them and their site. We view this as a great way to push true “green” design into the mainstream.
3) On the idea that to get it exactly right you need an architect who will do a custom job and conduct many site visits, I could not agree more. I used to run a custom design firm (www.ZeroEnergy.com) and custom design is the best way to get an optimized home. Again the reality is that custom architecture only servers about 5% of the US residential market. We need to find ways to push good design into a $250,000 home. FreeGreen is one way of doing this, and we hope that we will spark much conversation like the comments above, and cause everyone to re-think home design. Our goal is to affect as many homes as possible, and with over 5,000 free House Plan downloads to date (in four months) we think we are doing a good job. As always let us know what you think.
Thanks,
Dave Wax
Hi, this is Greg La Vardera, the other interviewee from above. I understand the call for unique solutions from several people that have posted above. This is almost universally the outlook of architects, and it is in fact the way we are trained to think about it. However I have to point out the obvious - this mode of thinking has only succeeded in alienating architects from the housing industry and left it to the lowest common denominator and our dismal residential built environment. So clearly standing by as architects and pleading that the public and developers and everybody else who builds a house needs to come to us to make sure it is a unique design for an individual site is not happening, and has not happened and is not going to magically happen by wanting it to be so. We as architects clearly have to find other paths and business models by which to deliver good design to the market, if we ever hope to displace the lousy design work that is status quo. So to that end I can assure you that Free Green and my own venture do not undermine good designers, quite the contrary by making better design available on a wider basis it exposes more people to better design and ultimately creates more demand for better design. The bar is raised across the entire market. Stock designs are always modified to localize them - this is nothing new, and nothing unique to being green. The criteria you need to adjust the plans for may be different but the practice is common in house plans. Is it as perfect as a custom design for every site, No. But it fits the model of the existing marketplace where universal custom design does not. And hence its a better way to influence the market and raise the bar.
So any architects that are wringing their hands over the threat of free or cheap design, you should really be thinking about how you can can contribute to changing the market, and not the business you think you are going to loose. The person who wants free or cheap plans is not the person who will pay the fees for custom commissions.
"Free" designs, although nobel in principle, does little more than devalue design and those who strive to achieve more than the stock standard plans the housing industry is renowned for.
Designs can be affordable without undermining the knowledge and skills of the architecture industry, particularly as it's fairly common knowledge that people are more likely to respect an item if they actually invest in it from the outset.
"Some are filtering clients because they are tired of having there design changed. The concept here is that if you charge more then the client is less likely to alter and\or ruin your design."
This is why a lot of people think architects are arrogant.
Somehow many architects think they are artists, rather than a service provider. If a client changes the plan, it is because the original version did not suit his needs and obviously the architect has not done is job correctly.
Rather than filtering out critical clients, architects should make more effort in satisfying the customer.