×
INTELLIGENT WORK FORUMS
FOR ENGINEERING PROFESSIONALS

Log In

Come Join Us!

Are you an
Engineering professional?
Join Eng-Tips Forums!
  • Talk With Other Members
  • Be Notified Of Responses
    To Your Posts
  • Keyword Search
  • One-Click Access To Your
    Favorite Forums
  • Automated Signatures
    On Your Posts
  • Best Of All, It's Free!
  • Students Click Here

*Eng-Tips's functionality depends on members receiving e-mail. By joining you are opting in to receive e-mail.

Posting Guidelines

Promoting, selling, recruiting, coursework and thesis posting is forbidden.

Students Click Here

Jobs

[color red]Fee Distribution -Typical Building Projects

[color red]Fee Distribution -Typical Building Projects

[color red]Fee Distribution -Typical Building Projects

(OP)
Greetings Forumer's,

This post was placed in another forum ... please forgive me for any duplication ...

I wanted to get some feedback on what is 'fair and reasonable' regarding distribution of a fee for a Prime Consultant and Sub-Consultants for a typical building project.

Some background information ...

We use a publication from the Alberta Association of Architects/ Association of Professional Engineers, Geoligists and Geophysicists of Alberta entiltled:

'Recommended Conditions of Engagement and Schedule of Professional Fees for Building Projects'

This publication assigns a Category to a particular building type and a range of fee precentages for a range of total project costs.

Similarly, we also look at RS Means Building Construction Cost Data, Reference Section, Reference Number R011 Overhead and Miscellaneous Data, R01107-010 Architectural Fees and R01107-030 Engineering Fees ( Structural Engineering Fees) as a guideline.

My question is:

How does the total Consultant fee get distributed amongst sub-consultants? Example:

Using the AIA method:

Multi Purpose, Multi User Building Complex located in Northern Alberta. Construction Budget is $2,300,000. No unusual project variables.

Building is Category 5, Community Multi Use Centre. Percentage fee calculation:

On the first $1,200,000 ---> 10.43% or $125,160
On the next $1,100,000 ---> 10.15% or $111,650
Total Basic Fee: $236,810

How is this distributed amongst Prime Consultant, and sub-consultants? I am interested in the structural proportions mostly.

One of the Architects whom I work with assigns a value of 8% of fee for structural subconsultant. Therefore, the structural subconsult fee would be 0.08*$236,810 = $18,950 ( round figures)

When I check the RS Means reference ( R01107-010) ... this seems quite low. For the same project as noted above, the RS Means calculation would run as follows:

Building Type: Apartments/Banks/Schools/Libraries/Offices/ Municipal Buildings: Use 7.5% of Total Project Cost( interpolated) yields : $172,500.

This is not too far off the estimate established from AIA/APEGGA.

Then, using R01107-030 Engineering Fees ( Structural Engineering Fees) , the Type of Construction would fall into Hotels/Apartments/Offices/Dorms/Hospitals/Public Buildings/Food Stores (in my opinion) from which the table indicates 1.70% for a project size ranging from $1,000,000 to $5,000,000. This table notes these percentages are included in Architectural Fees.

Using this method, I would calculate Structural Engineering Fees as :

0.017*$2,300,000 = $39,100

In summary, using AIA/APEGGA method, the Architect calculates the value of Structural engineering work as $18,950 while working thru the RS Means method yields the structural engineering fee to be $39,100.

I realize both methods rely upon indices of one form or another. Can anyone else provide me with their experience in this matter?

RE: [color red]Fee Distribution -Typical Building Projects

You are operating in a different world than I am used to.  What ever happened to estimating the hours required and bidding appropriately?  

RE: [color red]Fee Distribution -Typical Building Projects

(OP)
Estimating hours still valid procedure. Prime Consultant estimates for design fees based on total cost of construction is a well esstablished method as well.

Red Flag This Post

Please let us know here why this post is inappropriate. Reasons such as off-topic, duplicates, flames, illegal, vulgar, or students posting their homework.

Red Flag Submitted

Thank you for helping keep Eng-Tips Forums free from inappropriate posts.
The Eng-Tips staff will check this out and take appropriate action.

Reply To This Thread

Posting in the Eng-Tips forums is a member-only feature.

Click Here to join Eng-Tips and talk with other members!


Resources