HOAI service phases 1-9: Everything you need to know in construction

Everything you need to know

The HOAI, or Fee Structure for Architects and Engineers, is an important set of rules in Germany that sets the framework for the remuneration of architectural and engineering services.

Fee table per service phase for building construction:

Service phase 1 (basic design): 3%

Service phase 2 (preliminary planning): 7%

Service phase 3 (design planning): 11%

Service phase 4 (approval planning): 6%

Service phase 5 (implementation planning): 25%

Service phase 6 (preparation of award of contract): 10%

Service phase 7 (participation in the award of contract): 4%

Service phase 8 (project supervision and documentation): 31%

Service phase 9 (project management): 2%

Everything else important:

The HOAI, also known as the Fee Structure for Architects and Engineers, was mandatory for contracts until 2021, but has only been a guideline since 2021 due to an EU ruling.

In the HOAI, the federal government defined which fees are due for which services, as well as delimitations for special cases.

Special services are not directly specified in the HOAI, but there is a large list that covers many, but not all, services. This should generally be regarded as a guide.

Detailed overview of the HOAI:

General information on HOAI

• The HOAI is a law/regulation of the federal government which came into force in 1977 as a replacement for the Goa and GOI. At that time, the Goa and Goi only focused on architects (GOA) and engineers (GO).

• The HOAI does not regulate what the architect or engineer does, it merely defines the fee, i.e. salary.

  One aim of the HOAI is to ensure that the fee is based on the task and that competition is not based on price but on quality.

• Changes in 2021 have changed some significant things. Before 2021, fee agreements had to be drawn up in writing, but now the text form is sufficient. Before 2021, the HOAI was also mandatory, now it is merely a recommendation.

• In addition, since 2021 it has been possible to adjust this fee agreement during the planning process and construction project. This means that architects can still adjust their fees during the construction project because, for example, they have seen that the planning has become significantly more complex.

The HOAI affects various players in the construction industry, including:

1. Architects: They are often the main users of the HOAI, as they are responsible for the planning and supervision of construction projects. The HOAI helps them to determine their fees for the services provided.

2. Engineers: Engineers, especially civil engineers and other specialized engineers, use the HOAI to calculate their fees for technical planning and consulting services.

3. Clients: For clients, the HOAI is an important tool for understanding and controlling the costs of planning and consultancy services. It helps to conclude clear and transparent contracts with architects and engineers.

4. Specialist planners: Specialists such as structural engineers, building services planners or landscape architects use the HOAI to assess and remunerate their specific services.

5. Project managers: They use the HOAI to support the cost planning and budgeting of construction projects and to ensure that remuneration is fair and transparent for all parties involved.

1. Basic determination (3%)

   • In the first service phase, the initial situation and the client's wishes are understood. The general conditions of the entire project are worked through once. In this phase it is planned whether other trades, special machinery or other special features are required, which is why this service phase often begins with a site inspection.

2. Preliminary planning (7%)

   • In the second service phase, the first sketches and drafts are created. The room function, room size and many other fundamental questions should already emerge from these drafts. In this step, the first authorities are also contacted for approvals and the first cost calculations are drawn up.

3. Design planning (11%)

   • In the third service phase, the plans from the second service phase are worked out in detail. All relevant planners come together and have to integrate their own plans into the big picture. Proportions, sizes and everything else are defined up to a certain level of detail. The level of detail is defined by the HOAI and official specifications; as a rule, the planning has as much detail as possible. This phase also involves precise cost planning and the creation of a construction site plan (only for some buildings).

4. Approval planning (6%)

   • The fourth service phase involves the final preparation of plans and all other documents. Accordingly, the HOAI describes this important service phase very precisely. Of course, these plans are not only drawn up in the final stage, but are also sent to the relevant authorities for approval.

5. Implementation planning (25%)

   • In the fifth service phase, the exact construction plans are drawn up. In contrast to the approval documents, the possible tolerances and characteristics are also specified here. In this phase, the quantities of materials, types of trades, characteristics and much more are also precisely determined by a planner.

6. Preparation of the contract award (10%)

   • The sixth service phase deals with the awarding of the contract, including preparation for the final deadline. Among other things, a service description, specifications and implementation planning are drawn up for this. The major factor in this service phase is cost control so that the project does not become too expensive.

7. Participation in the awarding of contracts (4%)

   • The seventh service phase is about the tender itself; in the previous phase, all the necessary documents were created. Now it is time to obtain offers, compare them and finally award the contract. In this phase too, a comparison should be made with the original cost estimate in order to stay within the budget.

8. Project supervision (31%)

   • In the eighth service phase, work finally begins on the extension. Now schedules, invoices and costs must be constantly maintained to ensure that the construction site runs smoothly. In addition, it must be checked whether what has been built actually corresponds to what was planned or whether there are other defects. If these are flawless, the property is finally handed over to the client after acceptance.

9. Property management (2%)

   • The ninth and final service phase goes beyond the construction framework and describes the warranty for defects. Specifically, this means that all defects that appear in the next year, for example, are assessed and possibly repaired.

Special cases

If an engineer has not been hired for a complete service phase, the fee must be determined according to a professional assessment.
This expert opinion looks at the basic services that are provided, but the HOAI can no longer be consulted when determining the exact fee.

Important changes to the HOAI 2021

The HOAI was reformed in 2021 to allow more flexibility in terms of remuneration. Previously, minimum and maximum rates were set, but these now only serve as a guide. This means that architects, like engineers, can negotiate their fees more individually, which is beneficial for both sides.

The HOAI ensures that all parties involved in the construction process can reach clear and fair agreements. It is particularly important as it provides a standardized basis for the invoicing and remuneration of services, which is beneficial for both contractors and clients.

Further links: factro

KPMG Law)​​ (HOAI.de)​​ (HOAI.de)