On Wed, Nov 5, 2014 at 12:26 AM, <xxxxxx@comcast.net> wrote: > The customer's total > budget included the cost of my friend's plans and the > cost of building the home. Yes. These are different line items. > My understanding of the rules is that a budget is set > prior to asking an architect to draw a set of plans for > a new design. That would be sensible. Although in the real world we frequently see huge cost over-runs and multiple design revisions. (and the design revisions are generally what drive the over-runs, but that's another story...) > The plan created by the architect includes the costs of > the components. The total cost of the finished plan, > hopefully within the original budget, is used to calculate > the architect's fee. The fee is paid from the established > budget. Yup. Design fees and build costs are separate items. > If the hull is not built the only budget cost is the architect's fee. Exactly. Although that seems kind of silly, no? Why would you buy a design without budgeting money to build it? > If the hull is built both the architect and shipyard are paid > for the work done from the budget. That's an aggregate cost again. You pay the design fee regardless of whether you build the ship or not. > A second hull is constructed by the same shipyard and > receives the cost of the hull and components, which is > taken from the budget. If pay for the design work, you own the design. If *you* order a second ship at the same shipyard, there would be no additional design fees. (which is silly, because if you order a second ship, there WILL be design changes from the first one, tweaks to improve performance, handling, ease of maintenance, etc.) If someone else sees your ship, says "oooh, shiny, I want one" and goes to the shipyard, AND YOU PAID FOR THE DESIGN, the shipyard will direct them to you to buy a license. Or direct them to a qualified naval architect to design something similar. If the shipyard did the design themselves, and sells it under license as a "standard design", you pay their nominal license fee and they start building. Or to put in in housing terms, if you pay someone to design a house, the cost is (design cost x1), regardless if you build it. If you design and build a house, cost is (design cost x1) + (build cost x1). If you decide you like it so much, you build two more copies for vacation homes, cost is (design cost x1)+(build cost x3). If you decide to go build a housing development with 30 cookie cutter copies of that house, the cost is (30x build cost)+(1x design cost) for the neighborhood. Dan -- "Any sufficiently advanced parody is indistinguishable from a genuine kook." -Alan Morgan