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RE: Re-use fees

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Mark:

 

We use the 25% repeat fee all the time.

 

Look at it this way:

 

 

1)       Will the owner indemnify you if there is a problem with

The 100th unit?

 

2)       The owner makes the same profit for the 100th unit as he does for the first, so why should

          You assume that same level of liability and exposure for any less than 25%????

 

 

Other options:

 

1)       A reducing repeat fee schedule, i.e., 25%, 20%, 15%, etc… to zero by the sixth unit.

 

2)       A “hold harmless” clause for any subsequent unit.

 

 

 

When in doubt, check with your O/E carrier…see what he says.

 

Heck, my insurance guy thinks my BASE fees are too low, let alone any repeats!

 

 

 

 

 

 

 

David L. Fisher SE PE

Fisher + partners

372 West Ontario

Chicago 60610

 

312.573.1701

312.573.1726 fax

 

312.622.0409 mobile

 

www.fpse.com


From: Mark Pemberton [mailto:markpemberton(--nospam--at)sbcglobal.net]
Sent: Tuesday, May 18, 2004 2:26 PM
To: SEAOC
Subject: Re-use fees

 

I have typically used a 25% re-use fee for the residential projects I have done in the past.  I now have a project with potentially hundreds of units being built.  Using this percentage for a re-use fee in this case seems a bit excessive.  Any input appreciated.

 

Mark Pemberton, S.E.

Pemberton Engineering

Davis, CA