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RE: A/E Design fees for federal projects

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Title: RE: A/E Design fees for federal projects
Warren:
 
As I tried to explain yesterday, you won't be able to negotiate your fee higher than 6%.  Instead, you need to creatively negotiate your scope lower than normal.  With a limited scope of work, everything falling outside the scope becomes billable extra services.
 
Stan
 
 
 -----Original Message-----
From: Foy, Warren [mailto:Warren.Foy(--nospam--at)mhgrp.com]
Sent: Tuesday, September 17, 2002 7:06 AM
To: seaint(--nospam--at)seaint.org
Subject: RE: A/E Design fees for federal projects

Stan,
 
Thanks for the reply.  I was looking for the actual regulation to see if there are any situations where the 6% fee can be negotiated higher.  Our work is primarily for the federal government (COE and Navy) and we have had projects where Corps and Navy design requirements make it very difficult to properly design facilities within the 6% fee.  I'll try to find the regulation on the web.
 
Thanks
-----Original Message-----
From: Caldwell, Stan [mailto:scaldwell(--nospam--at)halff.com]
Sent: Monday, September 16, 2002 5:17 PM
To: 'seaint(--nospam--at)seaint.org'
Subject: RE: A/E Design fees for federal projects

Warren:

I believe that it's FAR (Federal Acquisition Regulation).  The trick is to define your 6% scope of services very tightly, eliminating everything before the actual beginning of the preparation of construction documents, as well as everything after their completion.  If they want conceptual design studies, cost estimates, participation in value engineering exercises, assistance during bidding, shop drawing review, RFI processing, site visits, etc. etc. ... these services are all outside the scope of what you will do for a basic 6% fee.

HTH,

Stan R. Caldwell, P.E.
Dallas, Texas

-----Original Message-----
From: Foy, Warren [mailto:Warren.Foy(--nospam--at)mhgrp.com]
Sent: Monday, September 16, 2002 4:01 PM
To: seaint(--nospam--at)seaint.org
Subject: A/E Design fees for federal projects


Can anyone tell me what the federal law is that limits A/E design fees to 6% of construction costs?


Warren S. Foy, P.E.
Structural Design Manager
The Mason & Hanger Group Inc.



300 West Vine Street, Suite 1300
Lexington, KY 40507-1814
v 859.252.9980 x221
fax: 859.389.8870
web: http://www.mhgrp.com

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