Proposal for large repetitive project

Question

Proposal for large repetitive project

RED9319 (Civil/Environmental)

(OP)

1 May 17 13:58

Hello all. I have been asked by an HOA (Homeowner's Association) of a condo complex to provide a seismic retrofit proposal for a large development. The project consists of slightly over 150 separate structures of which there are 6 unique building layouts over 70 acres. So it amounts to about 26 duplicate (or near duplicate) structures of each unique floor plan. And the retrofit design is VERY straight forward.

I am accustomed to working on projects with one or two maximum structures at a time. So preparing a proposal on this has me concerned. I am concerned because I've read several of the threads here regarding pricing for the value of your work. I totally agree with not cheapening my value by discounting and have always done so. So here's my question...

Since there are duplicate (or virtually duplicate) structures is it expected to discount the duplicate structures? I'm actually wavering on this. On one hand I see that my time to design the duplicates will be minimal except for the setup work. On the other hand, I am wavering because of the liability risk I'm setting myself up for. You see, since this is an HOA I can very well open myself up to litigation even though I may not have had anything to do with their problem. Now, of course anyone can sue me. But I've had quite a bit of experience working for a forensic engineer that handled HOA litigation work. And I know that HOAs come down hard on companies.

On a side note, this project will be prepared in phases. So I've got that part handled if anyone is concerned on my capabilities to handle such a large job.

So here's the summary:

1) Do I propose to charge full value for 6 structures and discount for approximately 144 structures? or...
2) Do I propose to charge full value for each of the approximately 150 structures.

Thanks everyone for your input!

Terratek (Geotechnical) · Answer 1 · 2017-05-03 13:53:33

What if it was just one big structure; how would you price it? I think your price should lay somewhere between the total price for individual structures and what the price would be for just one large single structure. The reason for this is because it makes sense for the fee to be reduced per sq ft as the scale increases. However, there will be extra work associated with doing several small projects that would not be repeated on one large single structure (i.e. multiple reports, drawings, invoicing, etc.). So, I would make a proposal that shows the price for just a single unit (or initial 6 structures) and then a price for all of the units combined. This way they can see your reasonable price for a single unit and they will also see you are giving them a "discount" for the other units. These are my favorite types of projects because you end up getting a single big project with a much higher overall profit. Of course, you also have to account for the competition. But I think that goes without saying. My above strategy works extremely well for loyal clients.

RED9319 (Civil/Environmental) · Answer 2 · 2017-05-03 17:42:45

Great. I really appreciate your approach. I will implement that moving forward. Thanks!

SparWeb (Aerospace) · Answer 3 · 2017-05-06 04:42:59

How old is this development?
Have you personally checked all of the 150 units to verify that they are all identical and will require identical retrofits?
Admittedly, that approach would be onerous, but instead how about checking on records of deviations, errors, repairs etc. that may be unique on some of the units, looking for any which could adversely affect the seismic project?
Your discounted rate for the follow-on condos should reflect the chances of having to open up the project again for a "one-off".

STF

sundale (Structural) · Answer 4 · 2017-05-23 18:16:26

You will need to tranquilize your E&O insurer when you explain there are 150 sources of subpoenas for this one project.

A limitation of liability clause with your client(s) is a reasonable request here.

Triangled (Structural) · Answer 5 · 2017-05-25 02:04:29

more of a reaction (thank you sundale

) than a considered reply... as I've had a (?) beer already this evening...but,
there is "value", and, there is "risk"
there was a time in my neck of the woods, not very long ago at all, when, as I was told... ( and I, silly me, believe it, but maybe you don't), in San Diego area when fully 100% of condo projects were involved in some kind of litigation -
lots of individual owners for your (and mine) single building design

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Proposal for large repetitive project