×
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

Proposal for large repetitive project

Proposal for large repetitive project

Proposal for large repetitive project

(OP)
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!

RE: Proposal for large repetitive project

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.

RE: Proposal for large repetitive project

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

RE: Proposal for large repetitive project

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

RE: Proposal for large repetitive project

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.

RE: Proposal for large repetitive project

more of a reaction (thank you sundale smile ) 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



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

White Paper – Your Construction ERP RFP Checklist
Selecting business software for a medium to enterprise-sized construction concern is extremely challenging in large part because most enterprise resource planning (ERP) suites originated in the world of repetitive manufacturing and are therefore a poor fit for a project and asset-centric business. However, midsize to large contractors need the predictable, auditable processes that ERP delivers. Download Now

Close Box

Join Eng-Tips® Today!

Join your peers on the Internet's largest technical engineering professional community.
It's easy to join and it's free.

Here's Why Members Love Eng-Tips Forums:

Register now while it's still free!

Already a member? Close this window and log in.

Join Us             Close