Subdivision Work - Pricing

[TORCHMAN]

Correct me if there is already a discussion on this, but I could not find it.

New client (good architect in my area) asked me to price work for a whole subdivision of 50 houses. There are only 2 designs and in each there is a lat. unsupported wall and 2 beams. That is to say, the work is minimal, but liability is high. The developer is not a big name in my region which may add a bit to the liability.

Pricing off total cost of project doesn't seem to work since the scope is so small.
Pricing per unit, I would usually charge $1k for this, but at 50 units, $50k is obviously too high.

I am thinking of going in at $10k to $12k.

Am I in the ball park? Anyone has experience with this?

 

[human909]

There is no simple answer.

Though your price seems somewhat on the high side in my opinion given that it is only a single design in a single area. I'd be thinking maybe 5x what you would charge for a single build. But charge what you think will win you the job.

I do agree you should charge more for taking on that liability. I have to make a similar decision soon on a recent project. A simple design, but with potential to be used in ~8000+ locations across the country in varying wind, seismic and soil conditions. In my case the charging will be as much for the time to prepare suitable documentation for such unknowns.

 

[XR250]

So no other work than to just size 2 beams and a laterally un-supported wall?
What does a laterally un-supported wall mean?
What is your work product/deliverable?

 

[phamENG]

These can be tricky. Most developers don't want to pay reuse fees, because they do add up. But, as you rightly point out, you're liable for the structural performance of each and every one of those houses.

When it comes to multiple uses, I typically charge 100% for the first, 50% the second, and 25% for each one thereafter. If you have 25 uses, you may be able to go a little lower still per use.

So your $12k might be a tad high, but if you think you can get it and they'll pay it, go for it. It's not overcharging if the client is willing to pay it.