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RE: Plan Reuse Fee

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I have used a percentage of the profit for a project as a licenses fee for
reuse.  I think the architect has missed the boat ( no surprise I guess ) if
you make an error in the one set of drawings your exposure in 100 times. You
and the architect should be compensated for your risk.  A lawyer will
collect his 33% or 25% fee regardless if he puts in 1 hour of 10,000 hours,
no reduction or discount. The only time I would consider anything less would
be if the owner assumes all risk, and will DEFEND and indemnify me and my
company. He assumes the risk and gets the benefit.

My thoughts, Dan Novak  

-----Original Message-----
From: SDGSE(--nospam--at) [mailto:SDGSE(--nospam--at)]
Sent: Wednesday, February 09, 2000 12:07 PM
To: seaint(--nospam--at)
Subject: Plan Reuse Fee

I have a project which consists of an eight-unit, three story apartment 
building block that will be repeated about 100 times on the same site, 
totaling 800 or so apartment units to be owned, built, and maintained as a 
rental property by the same developer.

In negotiating the structural design fee, I am asking for a lump sum fee for

the model building plus an additional per use fee for each additional 
building to be built on the site. The architect has agreed to waive his 
rights to the "reuse fee" and accepted a fee and liability for the design of

the model building only. 

The owner wants me to accept the same arrangement as the architect has
to, but I am not comfortable with that and am about the inform the architect

of my disinterest. Before I do that, I would appreciate some comments from 
others who had similar experiences. Remember that these are apartment 
buildings and not condominium units. However, my feeling is that it may be 
possible to convert the apartments into condominiums in the future.

Any thoughts?


Oshin Tosounian, S.E.