Fees and resourcing
This article needs more work. To help develop this article, click 'Edit this article'.
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.
- A tool such as the RIBA fee calculator based on the cost of the resource and other requirements.
 Types of fee
- 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.
- 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.
- 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).
- Standard appointments generally have provision for additional fees.
- Beware of bespoke appointments that limit additional fees to client instructions.
- Licence fees for the design if the developer uses it on other sites.
- Client experience/ knowledge/ reputation/relationship. 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.
- Local opposition/support
- Requirement to appoint sub-consultants
 Key influences on resource requirements
- Type of procurement and scope of services.
- Project size
- Extent of works to existing buildings
- Repair / conservation of historic buildings
- Degree of design repetition
- Practice size and overheads
- Geographic proximity
- Business expansion.
- Enhanced profit.
- Employ existing staff
- New market/sector
- Quality of work
- Prestige/enhanced reputation
 Key influences on brand value
- Practice reputation.
- Specialist skills.
Whilst using the points above to aid a resource-based approach to calculate feed, cross-checks are recommended to ensure that a sensible outcome has been reached. Such checks include comparing the fee to be proposed against previous similar jobs and benchmarking the proposed fee against other projects when expressed as a percentage of construction cost.
 Related articles on Designing Buildings Wiki
Featured articles and news
What will the General Data Protection Regulations (GDPR) mean for you when they come into force in May?
Business Secretary chairs a new taskforce to monitor and advise on mitigating the impacts of Carillion’s liquidation.
Sir John Armitt is appointed the new chair of the National Infrastructure Commission.
High quality and high density homes - is it what we need or is it storing up trouble?
Government announces its intention to strengthen planning rules to protect music venues and neighbours.
National Audit Office reports that there is little evidence that PFI offers better value than other forms of contracting.
What is liquidation and how does it apply to contractors in the construction industry?
Scrutiny is placed on Carillion's controversial 2013 decision to extend subcontractor payment terms to 120 days.
RSHP unveil their involvement in a boundary crossing which will provide a new entry point into Hong Kong.
With PFI currently under the spotlight due to Carillion, this introductory article explains what they are.
Estimates suggest that up to 30,000 small firms could be at risk of non-payment as a result of Carillion's collapse.