Last edited 13 May 2016

Fees and resourcing

This article needs more work. To help develop this article, click 'Edit this article'.

Contents

[edit] Calculation

Fees can have impact on client's perception of a company and so it is important to get them right.

They can be based on:

  • Empirical data: practice records of previous costs.
  • Calculating the cost of the resource and other requirements (renders,printing, travel etc…) of the project on stage by stage basis.
  • Both
  • A tool such as the RIBA fee calculator based on the cost of the resource and other requirements.

[edit] Types of fee

Fees calculated as a percentage of the final construction cost:

  • Suits straightforward building projects of relatively short duration.
  • Can appear to reward design consultants for an overpriced design.
  • Risk to the consultants that the construction cost could be lower than anticipated.
  • Can be used as a basis for fee calculation rather than a 'set in stone' agreement.

Lump sum fees:

  • Appropriate when the scope of the project/ required services/ programme and cost clearly defined from outset and are unlikely to change.
  • It is possible to agree lump sum separately for each work stage.
  • Variations may allow additional fees.

Time charges:

  • Appropriate when resources or time scale cannot be predicted accurately. This is often the case in the early stages of a project.
  • An agreed hourly rate per staff category / named individual.
  • May include a provision for increases with inflation (12 monthly).

Additional fees:

[edit] Risks and uncertainties

  • Client experience/ knowledge/ reputation. It may be appropriate to carry out a credit check and speak to other firms to find out how quickly they pay/ whether they observe payment terms and so on.
  • Project definition: Are the requirements clear or uncertain?
  • Scale of project: Impacts planning timescales/ resource/ programme.
  • Complexity of the project.
  • Whether similar work has been done before.
  • Programme: scale/ planning/ resource/ uncertainties such as repairs for survey/squatters.
  • Other resource requirements: if a project is overseas, it may be appropriate to work with a local consultant to benefit from their knowledge.

[edit] Key influences on resource requirements

  • Type of procurement and scope of services.
  • Project size
  • Complexity
  • Extent of works to existing buildings
  • Repair / conservation of historic buildings
  • Degree of design repetition
  • Practice size and overheads

[edit] Key influences on brand value

  • Practice reputation.
  • Location.
  • Culture.
  • Specialist skills.

[edit] Find out more

[edit] Related articles on Designing Buildings Wiki