Residential Rehab Fees

[IsaacStructural]

I found some other threads on the topic of fees, but most were a bit out dated, not quite on target with my specific interest, or were closed, so please bear with me.

I'm looking for guidance on proposed fees for structural rehabilitation projects of residential buildings. Gut Rehabs or row houses, loft conversions, that sort of thing. What is a reasonable percentage for this sort of work? I know some use a range of about .75%-2% of total construction cost for commercial buildings, but how about residential rehab work. I'm assuming the percentages might be a bit higher for residential work.

For discussion, say the job is a rehab of an existing masonry/wood building, structural work is primarily converting an attic to usable space, new interior stair, adding some dormers to the roof, etc, with an estimated construction cost of approximately 100k. If you want the work (trying to develop relationship with architect) is $2,000 a reasonable fee?

Also, how do you price your work if it is a mark up job? (structural details and information to conveyed on architectural drawings) vs. doing your own drawings?

M.S. Structural Engineering
Licensed Structural Engineer and Licensed Professional Engineer (Illinois)

 

[bigmig]

We do a lot of remodels and the 1st thing you will learn real fast is that they all have a fair share of *surprises*. Specifically, field conditions that no one expected. This leads to more design time and higher costs for the owner, which is a big problem when you have committed to a hard price.

I have found it is best to get on the same page as the owner and convince him/them that it is not possible for you to see into the future and price a job that can turn 100 different ways before the end. For this reason, we give them a phase cost for basic items and essentially say that items that are beyond the scope of our proposal will be billed hourly after approval from the owner. Make sure that the owner is aware that you don't work for free and that you can't see through existing walls. If he has qualms about this, you might want to get a new owner.

Our fees are based on the amount of design time we anticipate the project taking, which generally is between 1 and 2% of the project.

And watch out for contractors who, despite their good intentions, will come across those skeletons in the closet and will need instant guidance and direction (otherwise they will make their own direction). You will suddenly have a lot of time that you have spent that wasn't authorized by the person signing the checks. Make sure the contractor is clear that you do not work on items that are not in your scope without approval.

 

[MiketheEngineer]

Set a base price - all additions are at $150/hr or whatever makes sense to you. THEN enforce it.

 

[msquared48]

I have found that you can really get taken with set prices on rehabs, percentages or not. I will only work on atime and materials basis for these. Too many cooks in the kitchen here.

Mike McCann
MMC Engineering

http://mmcengineering.tripod.com

 

[MiketheEngineer]

Yep - T&M!!!