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    Charging For Civil Engineering Services: Cost Plus Fixed Fee, Fixed Price, Percentage of Construction Cost and Schedule of Minimum Fees

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    Ghail Rivas Gha IL
    The document discusses six common methods for charging civil engineering services: 1) salary cost plus expenses, 2) hourly billing plus expenses, 3) per diem, 4) cost plus fixed fee, 5) fixed price, and 6) percentage of construction cost. It also includes guidelines for determining minimum compensation for civil engineers based on the size and complexity of the engineering project. The cost plus fixed fee method provides flexibility for changes to scope and fee but requires clearly defining the engineer's scope of services. A fixed price contract also needs a clear time period defined. The percentage of construction cost is seldom used alone and fees vary from 3-10% depending on the type of engineering services provided.

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    Charging For Civil Engineering Services: Cost Plus Fixed Fee, Fixed Price, Percentage of Construction Cost and Schedule of Minimum Fees

    Uploaded by

    Ghail Rivas Gha IL
    541 views11 pages
    The document discusses six common methods for charging civil engineering services: 1) salary cost plus expenses, 2) hourly billing plus expenses, 3) per diem, 4) cost plus fixed fee, 5) fixed price, and 6) percentage of construction cost. It also includes guidelines for determining minimum compensation for civil engineers based on the size and complexity of the engineering project. The cost plus fixed fee method provides flexibility for changes to scope and fee but requires clearly defining the engineer's scope of services. A fixed price contract also needs a clear time period defined. The percentage of construction cost is seldom used alone and fees vary from 3-10% depending on the type of engineering services provided.

    Original Description:

    Elective 2

    Original Title

    CHARGING-FOR-CIVIL-ENGINEERING-SERVICES

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    The document discusses six common methods for charging civil engineering services: 1) salary cost plus expenses, 2) hourly billing plus expenses, 3) per diem, 4) cost plus fixed fee, 5) fixed price, and 6) percentage of construction cost. It also includes guidelines for determining minimum compensation for civil engineers based on the size and complexity of the engineering project. The cost plus fixed fee method provides flexibility for changes to scope and fee but requires clearly defining the engineer's scope of services. A fixed price contract also needs a clear time period defined. The percentage of construction cost is seldom used alone and fees vary from 3-10% depending on the type of engineering services provided.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    541 views11 pages

    Charging For Civil Engineering Services: Cost Plus Fixed Fee, Fixed Price, Percentage of Construction Cost and Schedule of Minimum Fees

    Uploaded by

    Ghail Rivas Gha IL
    The document discusses six common methods for charging civil engineering services: 1) salary cost plus expenses, 2) hourly billing plus expenses, 3) per diem, 4) cost plus fixed fee, 5) fixed price, and 6) percentage of construction cost. It also includes guidelines for determining minimum compensation for civil engineers based on the size and complexity of the engineering project. The cost plus fixed fee method provides flexibility for changes to scope and fee but requires clearly defining the engineer's scope of services. A fixed price contract also needs a clear time period defined. The percentage of construction cost is seldom used alone and fees vary from 3-10% depending on the type of engineering services provided.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    The document discusses six common methods for charging civil engineering services: salary cost times multiplier plus expenses, hourly billing rates plus expenses, per diem, cost plus fixed fee, fixed price, and percentage of construction cost. It also discusses schedules for minimum fees.

    The six methods discussed are: 1) salary cost times multiplier plus expenses, 2) hourly billing rates plus expenses, 3) per diem, 4) cost plus fixed fee, 5) fixed price, and 6) percentage of construction cost. The appropriateness of each method depends on factors like the nature, scope, and complexity of the required services.

    When using the cost plus fixed fee method, the scope of services must be defined, cost estimates provided, and the fixed fee amount agreed upon. It is applicable when services need to begin before the full scope can be determined. The agreement should allow for adjustments if the scope, time, or effort levels change significantly.

    CHARGING FOR CIVIL

    ENGINEERING SERVICES:
    COST PLUS FIXED FEE, FIXED
    PRICE, PERCENTAGE OF
    CONSTRUCTION COST AND
    SCHEDULE OF MINIMUM FEES

    Reported by:
    SOMERA, KIMBERLYN J.
    SANICO, JURALF
    ECHIN, PATRICK ACE EXODUS M.
    Charges for Civil Engineering Services are usually computed
    using one of the six methods:

     1. Salary cost times multiplier plus direct non-


    salary expense (“Reimbursable”)
     2. Hourly Billing Rates plus Reimbursable

     3. Per Diem

     4. Cost plus fixed fee (“CPFF”)

     5. Fixed Price

     6. Percentage of Construction Cost (“Percentage”)

     Schedule of Minimum Basic Fee


    Combination of methods of payments for different phases
    of the contract may be used. The method or combination if
    methods used depends upon the nature, scope, and
    complexity of services required by the client.
    The first four methods are based upon the Civil Engineers
    costs to perform services. They are particularly applicable
    to assignments where the scope of services is not self
    defined.

    The fixed price and percentage of constructive cost methods


    are based upon a specific deliverable and do require that the
    be well defined.
    The cost plus fixed fee method provides more flexibility to
    accommodate both scope and fee changes than do either the
    fixed price or percentage or construction cost methods.
    4. The cost plus fixed fee method

    The cost plus fixed fee basis requires, as a prerequisite to equitable negotiations, that the
    client and the Civil Engineer define and agree upon the scope of services the Civil
    Engineer is to perform. Such definition of the scope of service is essential to enable the
    Civil Engineer to estimate costs and propose an equitable fixed fee amount. The scope of
    services, cost estimate, and fixed fee should be incorporated into the client-engineer
    agreement.

    can be used when the CE is required to start providing service


    before the detailed scope of services can be determined. In such
    cases, the following considerations apply:
    1. The general scale and intent of the project should be fairly well
    defined, even if the full scope is indeterminate; for example, the
    number, size, and character of buildings or other facilities, the type
    of utilities, & other such essential information should be available.

    2. The types of service to be performed by the CE should be agreed


    upon and fully set forth. The agreements should also provide for
    appropriate adjustments in the fixed fee, in the event that the
    physical scope of the project, time of completion, or level of effort
    and services required are materially changed over those
    contemplated during the negotiations.
    5. Fixed Fee 6. Percentage of Construction Cost

    Is frequently used for The Percentage of Construction Cost


    investigations and studies and method is seldom used raw.
    for basic services on design type
    projects where the scope and The Percentage of construction cost
    complexity of the assignment method may be used to determine the
    are clearly and fully defined. compensation of the engineer for
    services where the principal
    responsibility is the detailed design
    A fixed price agreement should or construction supervision of
    contain a clearly stated time period. facilities to be constructed.
    Construction cost is defined as the estimated total cost of
    constructing the facility to be covered by the proposed
    detailed design or construction supervision services, excluding
    the fees and other costs of such services, the cost of land
    and right-of-way, and legal and administrative expenses.

    The percentage fee shall consider the


    type, complexity, location, and magnitude
    of construction cost of the project and
    shall not exceed the following
    percentages of estimated construction
    cost:

    a. Feasibility studies 3%

    b. Detailed engineering design 6%

    c. Detailed architectural and engineering


    design 8%

    d. Construction supervision 10%


    SCHEDULE OF MINIMUM BASIC
    FEE
    Principles to observe:

    1. When doing work on foreign assisted 3. A Civil Engineer


    projects, or in projects where international; employed in the private
    consultants participate, the Civil Engineer sector who signs and seals
    performing similar or equivalent work, should the Civil Engineering
    accept compensation that approximates the plans, specifications and
    international standard rates. other related documents
    of a certain project for
    2. Civil Engineers regularly employed in the and in behalf of his
    private sector shall have a minimum employers shall be
    compensation corresponding to 10% more compensated with a
    than the minimum wage prevailing in the region minimum of 10% of the
    as basic monthly salary. Civil Engineers professional fee for
    employed in the government sector shall have a the project, over and
    minimum basic monthly salary corresponding to above the basic monthly
    appropriate entry positions provided by the salary.
    Civil Service Commission.
    Part A Minimum Compensation for CE as Prime Professional

    Group I Simple structures such as loft,


    warehouses, garages, sheds, market
    buildings, and comparable projects of
    one but not more than two stories.
    Group II Buildings of 3 stories up to 14 stories, towers,
    tanks, exhibition buildings, memorials, industrial
    buildings, simple bridges, low dams, piers, wharves, bins
    and silos and comparable projects.
    Group III Buildings with 15 stories or more floors, long
    span and complex bridges, high dams, major port works
    power plants and other complex structures not covered
    in Group I and II.
    Part B Minimum Compensation for CE as not Prime Professional – When CE
    renders basic Engineering Design Services only his fee shall be as follows:

    Group IV Hotels, large apartment


    buildings, office buildings, shopping
    centers, store buildings, resorts,
    hospitals, and comparable projects.

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