This is the conversation that stalls more luxury renovations than any other, and it almost always comes from the same place: an owner receives a design proposal for a number, assumes it covers the project, and then discovers it covers the design.
It is not a trick. It is how the industry is structured everywhere. But if nobody explains it, the first construction bid feels like a betrayal.
Here is exactly who pays for what.
The three budgets
A renovation is not one number. It is three, and they are paid to different people at different times.
1. The design fee
Paid to: the designer. Covers: the thinking, the drawing and the coordination. Typical share: the smallest of the three.
Depending on the agreement it includes concept and direction, space planning, drawings, finish and fixture specification, millwork detailing, lighting design, coordination with the contractor and architect, site visits, and often procurement management.
Market ranges in Miami: $100 to $300 per hour, or a flat fee starting at $5,000 to $15,000 for the initial phase of a luxury project, or a percentage of total project cost reaching up to 30%.
2. Construction
Paid to: the general contractor. Covers: demolition, framing, plumbing, electrical, HVAC, tile, stone, paint, millwork installation, permits and labour. Typical share: usually the largest.
Market ranges in Miami: $80 to $220 per square foot for condominium work, $175 to $250 or more for a comprehensive gut renovation, and frequently above $250 to $300 for coastal luxury.
This is a separate contract with a separate company. The designer specifies. The contractor builds.
3. Furniture, fixtures and equipment
Paid to: vendors, or to the designer if they are purchasing on your behalf. Covers: furniture, lighting fixtures, rugs, appliances, window treatments, art, accessories. Typical share: in a fully furnished project, frequently rivals construction.
If the designer purchases on your behalf, a markup of 15% to 25% on goods is standard practice. Ask whether trade discount is passed through; in many cases trade plus markup lands at or below retail.
The number that matters
Comprehensive service in Miami, meaning design plus construction management plus furnishings, is quoted at $200 to $350 per square foot all in.
If you want a single number to plan against, that is the one. A design fee alone tells you almost nothing about what the project costs.
What the design fee never covers
Worth stating plainly, because this is the source of nearly every misunderstanding:
- Construction labour and materials
- Furniture, appliances and fixtures
- Municipal permits and permit expediting
- The structural engineer's letter your board requires
- Association review fees, $500 to $2,500
- Elevator deposits, $500 to $1,500
- Security deposits against common-area damage
- Freight, delivery, receiving, storage and installation of goods
- Any building-imposed cost such as a special assessment
Several of these are unavoidable in a tower and none belong to the designer.
Who is responsible for what
| Responsibility | Designer | Contractor | Owner |
|---|---|---|---|
| Concept and direction | Yes | No | Approves |
| Drawings and specification | Yes | No | Approves |
| Cost of construction | No | Yes | Pays |
| Construction means and methods | No | Yes | No |
| Permits | No | Yes, usually | Pays |
| Structural engineer's letter | Coordinates | Coordinates | Pays |
| Board submission | Prepares | Provides insurance | Submits, usually |
| Purchasing furnishings | Often | No | Pays |
| Receiving and installation | Manages | No | Pays |
| Schedule | Coordinates | Holds | Approves |
| Association fees and deposits | No | No | Pays |
The one owners get wrong most often: the designer does not control the construction cost. They influence it enormously through specification, but the price comes from the contractor.
How the money actually flows over time
Rough shape, not a rule:
Phase 1, design. Retainer to the designer. Concept, planning, preliminary drawings. This is where a flat fee of $5,000 to $15,000 typically sits for a luxury project.
Phase 2, documentation. Further design fee payments. Full drawings, specification, millwork detailing. Nothing has been built and nothing has been bought.
Phase 3, approvals and bidding. Board submission, permits, contractor bids. The first real construction number appears here, and this is the moment owners are surprised if nobody prepared them.
Phase 4, procurement. Deposits on long-lead items. Stone, custom millwork and imported furniture run months, so money leaves early.
Phase 5, construction. Contractor payments against progress. The largest outflow.
Phase 6, installation and closeout. Balance of furnishings, delivery, installation, final design fee payment, deposit returned.
The planning consequence: significant money leaves in phase 4, before anything looks different. Owners who budget as though spending starts with demolition find themselves short.
Five questions that prevent every version of this problem
Ask them before signing anything.
1. Is this fee for design only, or does it include procurement and construction management? The single most important question in the entire process.
2. What is your estimate of total project cost, including construction and furnishings? A designer who has worked in your building can give you a range. If they will not estimate at all, that is worth noting.
3. Who purchases the furnishings, and what is the markup? If cost plus, ask whether trade discount is passed through.
4. What is excluded? Ask for it in writing. Permits, engineer's letter, association fees, freight, storage, installation.
5. How are revisions handled? Reasonable revisions included, substantial redirections billed, is the standard fair position. It should be written down.
The short version
| Budget | Paid to | Miami range |
|---|---|---|
| Design fee | Designer | $100 to $300/hr, or $5,000 to $15,000 initial flat fee, or up to 30% of budget |
| Construction | Contractor | $80 to $220/sq ft condo, $250+ coastal luxury |
| Furnishings | Vendors or designer | 15% to 25% markup if purchased through the designer |
| All in, comprehensive | $200 to $350 per square foot |
The design fee is the smallest number and the one that most affects the other two. A well-specified project avoids rework that costs more than the entire fee.
Want to know what your project actually costs, all in?
Tell us the building, the approximate square footage, and whether you are furnishing, renovating or both. We will lay out the three budgets so there are no surprises at bid stage.
Figures are published market ranges for South Florida gathered in 2026, not any single firm's pricing. Jorge Castillo Design offers both hourly and flat rate design fees.
Jorge Castillo Design designs high-end residential interiors across South Florida.