Sealed fee auction: how it works
What a sealed fee auction is, how clients and architecture practices use it, and how it differs from a competition and a direct award.
In a sealed fee auction, architecture practices submit their bid for a tendered project without the others seeing it. Only the client sees the bids. The practices see neither the amounts of the others nor how many have applied. After the deadline, the client compares the applications and makes the award freely.
Why sealed?
In an open auction everyone sees the lowest bid, and the participants undercut one another. For planning services this soon leads to fees that no longer cover the work. When bids are sealed, each practice calculates according to its own effort and its own understanding of the task. The client receives bids based on genuine calculation and can compare them calmly.
The process on Architektonik
- —The client tenders the project and defines the scope of services under SIA 112. Architektonik reviews the tender within 24 hours.
- —The auction goes live with a fixed submission deadline of at most 60 days.
- —Vetted practices unlock the auction and see the detailed description and the documents.
- —Each practice submits its application: approach, start, project lead and fee as an indicative quote. It can adjust it until the deadline.
- —The client compares, rates and makes the award. Only then does the selected practice learn who the client is and receive the exact address.
What belongs in a good application is described in the guide finding architecture commissions.
How the client compares
All practices quote for the same scope of services, so the fees are directly comparable. In the comparison view, the client rates the suitability and approach of each practice and decides for themselves how much fee, suitability, approach and schedule count. In the end, the client makes the award freely, by their own choice.
How it differs from a competition and a direct award
In an architectural competition under SIA 142, practices submit a design that a jury assesses anonymously. The procedure brings out the best project ideas but is laborious for everyone involved. In a direct award, the client chooses a practice without competition. The sealed fee auction sits in between: several practices apply, but without a finished design. They describe their approach in words and calculate the fee for a fixed scope of services. The terms are explained in the procurement glossary.
Who it suits, and who it does not
The fee auction suits private clients, investors and developers who want to compare several practices without running a competition. Public contracting authorities must tender under procurement law above the statutory thresholds (PPA/IAPP, on simap.ch); it is not intended for that. If you are looking for the best design idea and want to compare designs, an architectural competition serves you better.
What it costs
Tendering is free of charge for clients. Architecture practices pay CHF 39.90 per auction or CHF 149.90 per month with the Atelier subscription, each excl. VAT. Details are on the pricing page, and current auctions in the auction calendar.