There are two popular fee structures used by architects.
The FIRST method calculates the architectural fee as a PERCENTAGE of CONSTUCTION COSTS encouraging architects to push for increased budgets.
The SECOND method is based on an AGREED UPON FIXED FEE. This causes the architect's profit to decrease as more effort is spent refining the product.
I believe these methods subconsciously cause the homeowner and the architect to become financial foes. My goal is to fulfill the client's wish list while creating the most cost effective and aesthetically pleasing design.
I prefer to agree upon an hourly rate and provide the homeowner with an estimate of the time it will take to accomplish the goal.