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Sounds old school.
My architect friends all quote outside of % now since property values became 'crazy', so they still design £1m plus houses, but the design job would 'only' be £20k, etc.
Mostly the pricing is based on packages... number of options, 3d walkthroughs, planning consultant/guarantee, stages, etc.
So mine seems to be charging 6% of the entire budget I gave him for absolutely all costs, for stage 4, and then 2% of same for stage 5.