how to charge for tract home plansets
how to charge for tract home plansets
(OP)
I have a client, a very good client, that is building 2 duplexes for a total of 4 units. He has contracted with me on a time and material basis to do the architectural drawings and all the structural design.
The 2 duplexes are exactly the same, thus he only needs one plan set. I have talked to a couple of engineers who say that I need to charge him some sort of fee for using the plans for the second building. After all, my liability is certainly increased if something goes wrong or if I make an error. Is there an industry standard for how to determine this fee? Maybe a percentage of the original drawing fees? I have never encountered this before nor has my client and I want to be fair to him but I don't want to cheat myself. Any thoughts are greatly appreciated.
The 2 duplexes are exactly the same, thus he only needs one plan set. I have talked to a couple of engineers who say that I need to charge him some sort of fee for using the plans for the second building. After all, my liability is certainly increased if something goes wrong or if I make an error. Is there an industry standard for how to determine this fee? Maybe a percentage of the original drawing fees? I have never encountered this before nor has my client and I want to be fair to him but I don't want to cheat myself. Any thoughts are greatly appreciated.
RE: how to charge for tract home plansets
I think I will use this formula myself instead of pulling numbers out of a hat.
RE: how to charge for tract home plansets
RE: how to charge for tract home plansets
But to answer your question, we charge the same fee for multiple structures or charge one large fee for all. Clients usually complain but explain it this way to them. You will spend over $8,000 dollars on stainless steel appliances for each unit but you won’t spend $1,500 for engineering for each.
It’s never failed for us and they always come back for the next project.
Be careful on the Architectural thing, Boards are using fines as a way to generate funds and one disgruntled contractor can make life miserable for you.
RE: how to charge for tract home plansets
You might be able to save them more than the additional fee.
csd
RE: how to charge for tract home plansets
Thanks.
I will certainly check with my state board. My understanding in Colorado is that an engineer can prepare architectural plans but we have an obligation to stamp them. In many states I have worked in engineers have done architectural drawings along with construction documents, I have never heard of this being a problem. Thanks for the heads up and i will check into it.
RE: how to charge for tract home plansets
Along the lines of what csd72 said: If the duplexes are going to be built one at a time, some design flaws will inevitably surface, as well as some better ways of doing things. Charge the same fee for both, and integrate improvements in the next set. That's good for everybody....of course then your client will ask you to build it a third time for free!