Revisions to fee limitations for federal design and construction projects now final, AIA Commends DoD for Increase

WASHINGTON – June 28, 2024 – Architects welcome the finalization of a revision to the fee limitations for architects working on construction projects within the purview of the Department of Defense (DoD) from six to ten percent.

DoD has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2024 that increases the statutory fee limit for architect and engineering services. This increase goes into effect on August 26, 2024.  

The revised fee limit will allow architecture firms, with particular benefit to those with smaller contracts, to cover labor, overhead, indirect, and other direct cost increases since the 6 percent rate was put in place over 80 years ago on contracts for producing and delivering designs, plans, drawings, and specifications. The increase will also benefit architect and engineering entities with contracts for producing and delivering designs, plans, drawings, and specifications for large horizontal and complex vertical construction projects. While costs have increased for architects, construction costs have increased more dramatically, which results in a higher cost limit.

“The finalization of this rule is the result of years of advocacy by AIA – I want to thank past AIA presidents Elizabeth Chu Richter, FAIA, Emily Grandstaff-Rice, FAIA and Dan Hart, FAIA, as well as leaders throughout the AIA whose efforts helped address this critical issue” said AIA President Kimberly Dowdell, AIA, NOMAC.

AIA looks forward to working with the Department of Defense as they implement the new law. AIA will continue to work towards a future where fair and reasonable fees are unfettered by fee limitations across all agencies on all federal design and construction projects.