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RE: Town homes project pricing

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I will be interested in hearing the responses to this question as I have been ask for proposals in similar situations in the past, although the last request was for a condo project.

 

We didn’t get the project.  Basically, due to the costs etc. we couldn’t do the project cheap enough for the developer.  We were even given the opportunity to redo our proposal, but just couldn’t make it work.

 

Joe

 

Joseph R. Grill, P.E. (Structural)

Shephard - Wesnitzer, Inc.

Civil Engineering and Surveying

P.O. Box 3924

Sedona, AZ  86340

PHONE (928) 282-1061

FAX (928) 282-2058

jgrill(--nospam--at)swiaz.com

 

-----Original Message-----
From: Alexander (Sasha) Itsekson [mailto:sasha(--nospam--at)engstruc.com]
Sent: Wednesday, June 28, 2006 2:43 PM
To: Light_framing(--nospam--at)structuralist.net
Cc: seaint(--nospam--at)seaint.org
Subject: Town homes project pricing

 

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