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Town homes project pricing

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Dear list:
 
The architectural client asked me to provide a fee proposal for townhouse project consisting of 29 units out of which four buildings are 4 unit buildings each and the rest are a single family homes with 3 to4 inches gap between them.  There are total of 4 separate building designs.
Below is the information I have to date:

•The project budget is approx. $3.4 million
•Consultants' & Architect's fees anticipated to be approx. 13% of construction or $450,000 total.
The architect anticipates approximately 7 months in design and documentation and then 20 months under construction.
The project is in California, West Sacramento county, non-expansive clays, spread footing foundation.
•The rear of the 1 acre property is on a slight slope and is adjacent to the railroad tracks
•These are town homes and NOT condominiums, the architect ahs a complete indemnification in their contract with the developer in case of the condo conversion.  They suggested that we add the similar language in our contract with them.  However, I am told that there will a home owner's association.
•The developer does not have a wrap around insurance policy for the project and requires 1mln/2mln aggregate policy for all the members of the design team.  I currently have 250k/500k policy and I estimated that it would cost me 3k/yr for 10 years to get a project specific rider, if I can get one.
 
I don't know how reasonable the construction estimate is.  Assuming that the estimate is on the money what would be the appropriate percentage for the structural fee?  I can estimate the design fee for the 4 separate building types, but how do I estimate the fee for the rest of the buildings?  Considering the additional cost of insurance does it even have any sense in pursuing this project?  I order to make it worth my while the fee should be in order of 2% of the construction cost.
 
What are other things that I have to be watching out for?
 
Your advice is greatly appreciated.
 
Alexander (Sasha) Itsekson, SE
Enginious Structures
Oakland, CA
510.601.1646
www.Enginious-Structures.com