Last edited 14 Apr 2019

Fees and resourcing on design and construction projects

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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.
  • 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:

Lump sum 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

[edit] Key influences on resource requirements

[edit] Benefits

  • Business expansion.
  • Enhanced profit.
  • Employ existing staff
  • New market/sector
  • Quality of work
  • Prestige/enhanced reputation

[edit] Key influences on brand value

[edit] Context/benchmarking

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.

[edit] Related articles on Designing Buildings Wiki