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RE: Plan Reuse Fee

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If they do not want to pay you for the liability on the 2nd, 3rd, etc.
building, then you may be able to get the owner to provide you with a
hold harmless for any liability for any errors/omissions of the
non-model buildings.  In other words if you make a mistake, you only
have to pay to correct it on the first building, and he eats it on the
rest.  This may work in the short term,  But if he sells the project,
and then a problem shows up (i.e., handrails, or whatever the cause
d'jour the lawyers are looking at) you may have to sue the previous
owner to collect.

Depending on the municipality, they may need a permit set for each
building, eventhough they are "identical" buildings.  Odds are also that
modifications for site, updated codes etc. will have to be made on later
buildings, as the owner is not going to build 100 buildings in the next
two years.  You can "hide" your reuse fee in the fee for changes and
repermitting.

You could also toe the line, and tell your architect that he is a fool
to accept responsibility for so much work for so little fee.  Then
again, maybe together you can come up with a strategy to get the reuse
fee by using some of the above suggestions.


Charles F. Espenlaub, III, P.E.
Martin-Espenlaub Engineering



-----Original Message-----
From: SDGSE(--nospam--at)aol.com [mailto:SDGSE(--nospam--at)aol.com]
Sent: Wednesday, February 09, 2000 3:07 PM
To: seaint(--nospam--at)seaint.org
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
agreed 
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?

Thanks,

Oshin Tosounian, S.E.