Relationships, Phasing & Fees

ME 425 Keith Elder, P.E.

Plan/Spec Organizational Structure

Financing Taxes Real Estate Owner/ Developer

Architect

General Contractor

Mechanical Engineer

Structural Engineer

Other Engineers

Mechanical Sub

Electrical Sub

Other Subs

Design/Build Organizational Structure

Financing Taxes Real Estate

OWNER

Architect

General Contractor

( Early Involvement )

- OR Sub Contractor

Team/Build & Modern Organizational Structures

Civil Engineer

Structural Engineer

M echanical Engineer

OW NER DEVELOPER Taxes Finance Real Estate

Electrical Engineer

M echanical Subcontractor

Electrical Subcontractor

General Contractor

Design Phases
Concept Schematic Design Design Development Construction Documents Bidding Construction Administration

Determining Fees
Projects with Well-Defined Scopes Selections Can be Made Based on Price Design Costs (if any) are Included Projects with less well-defined scopes Selections Made Based on Qualifications Design Fees are Negotiated Usually Requires a Fee Proposal

Fee Structures
Fixed Fee Percent of Construction Time & Expense Using Multiplier Time & Expense Using Rate Schedule

Typical Fee Percentages

Total Construction Cost $100,000 $500,000 $1,000,000 $1,500,000 $3,000,000 $5,000,000 $10,000,000 $20,000,000 Total Design Fees 10.0% 9.0% 8.5% 8.0% 7.5% 7.0% 6.3% 5.5%