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Forums >> Community >> The Studio >> design fee
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Joined: Thu, Feb 14, 2008
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Hello all, I am charging a client a percentage of the construction cost for design, plans, managements, etc (the full package)...What I was wondering is what the word is for the fee percentage....I have the set percentage; but I would like to hear opinion on whether that percentage is of construction cost prior to the added contractor fee, or the percentage of the construction cost inclusive of the contractor fee..? Any feedback would be appreciated
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Joined: Fri, May 5, 2006
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Were you to use a standard AIA contract, it states that the percentage is based on the Cost of the Work. Cost of Work is defined as, "....Cost of the Work shall be the total cost to the Owner to construct all elements of the Project designed or specified by the Architect and shall include contractors’ general conditions costs, overhead and profit. The Cost of the Work does not include the compensation of the Architect, the costs of the land, rights-of-way, financing, contingencies for changes in the Work or other costs that are the responsibility of the Owner....." (taken from AIA Contract Document B101).
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