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consultant's fee

consultant's fee

consultant's fee

(OP)
Hi all. I have a financial question. In the construction industry the design team usually charge based on a percentage of the total construction cost (for large projects) or by lump sum method (for small projects). The former is usually 6%-10% of the total cost (bulk of which goes to the architect (50% -Archi/landscade/interior, 30% -structure/civil, 20% M/E). The 6-10% percentage is a "market standard". I am just wondering how did this number come out? Funny thing is the government earns more than that of the consultant (tax imposed by the government is around 8% in my area).

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