What Is Schematic Design? The 5 Design Phases, From SD to Construction
Schematic design is the first phase of an architect's work: setting the owner's goals and program, checking zoning, and sketching rough layouts until the owner approves one direction. It is followed by design development, which fixes the structure, systems and materials, and construction documents, the detailed set used for the permit and for pricing. The standard AIA agreement then adds procurement (bidding or negotiation) and construction. Each phase builds on the one before, so decisions get more expensive to change as the design moves forward.
| Phase | What happens | Typical share of design fee |
|---|---|---|
| Schematic design (SD) | Goals, program, zoning research, rough layouts; owner approves a direction | About 15% |
| Design development (DD) | Structure, mechanical, electrical, plumbing, materials, window and door locations fixed | About 20% |
| Construction documents (CD) | Detailed, dimensioned drawings and specifications for permit, bids and building | About 40% |
| Bidding or negotiation | Bid documents, contractor questions, owner picks a builder | About 5% |
| Construction administration | Architect answers field questions, reviews submittals and pay applications | About 20% |
Fee shares are a common rule of thumb from architecture practice guides. The AIA does not set them, and firms adjust them job by job.
Want a builder's number before the drawings are done? We price design as it develops on design-build and CMAR jobs. Licensed in Oregon (CCB #198582) and registered in Washington (L&I MODERNI888R7). Call (360) 326-2747.
Schematic design: the big decisions
The architect meets with the owner to learn what the project has to do, which usually sets the program: what rooms, how many, how large. They research zoning and code limits and draw study layouts. Costs at this stage are estimated from the overall size of the project, not from details, because there are no details yet. The phase ends when the owner agrees to one scheme.
This is the cheapest place to change your mind. Moving a wall in schematic design means redrawing a sketch.
Design development: fixing the systems
Design development turns the approved scheme into a coordinated building. The structural, mechanical, electrical and plumbing layouts are worked out, materials are chosen, and window and door locations are set. Practice guides call it the decision-freezing phase. It often ends with a formal presentation to the owner and an updated cost estimate, which is the last good checkpoint before the expensive drawing work starts.
Construction documents: the set you build from
Construction documents are the detailed, dimensioned drawings and written specifications that go to the building department for the permit and to contractors for pricing. It is the largest share of the architect's work. Contractors' final estimates come from this set. If the set is not finished when it goes out to bid, that should be marked on it.
Bidding, then construction
In the bidding or negotiation phase, the architect puts together the bid package, answers contractor questions and issues addenda, and the owner picks a builder. During construction, the architect answers field questions, reviews submittals and pay applications, and helps with change orders and the punch list at substantial completion. How much of that the architect does is set in the owner-architect agreement.
Where the builder comes in
Under design-bid-build, the contractor usually sees the job for the first time at construction documents, so the first real price arrives after most of the design fee is spent. If the bids come in over budget, the fix is redesign or value engineering late in the process.
Under design-build or construction manager at risk, the builder joins during schematic design or design development and prices the design as it develops, so budget problems show up while they are still cheap to fix. We built the Washougal Ace Hardware garden center design-build in August through October 2025, and ran the Mercantile Village landlord work in Lake Oswego as CMAR. Our preconstruction services page covers that early pricing work, and more terms are in our commercial construction glossary.
Frequently asked questions
What is schematic design?
The first design phase. The architect learns the owner's goals, sets the program (what spaces are needed and how big), checks zoning and code limits, and draws rough layouts. It ends when the owner approves one direction.
What are SD, DD and CD?
Schematic design, design development and construction documents: the three drawing phases. SD sets the idea, DD fixes the systems and materials, and CDs are the detailed, dimensioned set used for the permit, bids and construction.
What percentage of the design fee goes to each phase?
A common rule of thumb is about 15 percent for schematic design, 20 for design development, 40 for construction documents, 5 for bidding and 20 for construction administration. The AIA does not set these; they are negotiated job by job.
When should a contractor get involved?
It depends on the delivery method. Under design-bid-build the contractor usually prices finished construction documents. Under design-build or construction manager at risk, the builder joins during design and prices it as it develops.
Why do changes cost more later in design?
Each phase builds on the decisions approved in the one before. A change in schematic design moves sketches; the same change in construction documents can mean redrawing coordinated structural, mechanical and electrical sheets, and after construction starts it becomes a change order.
The bottom line
Schematic design picks the direction, design development locks the systems, and construction documents make it buildable and permittable. Bidding and construction follow. Make the big calls early, and get a builder's price before the construction documents are drawn if you can, because that is where most of the design fee goes.
From a former Rite Aid in Washougal to a bookstore cafe in Lake Oswego, Modern Northwest has priced and built commercial work in Oregon and Washington since 2005. Send us your schematic set.
Have drawings in progress?
Send us where the design is. We will price it now, before the construction documents are finished.
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