3 - Scope of Design Professional Services

3 - Scope of Design Professional Services - CE 332 Page 1...

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Unformatted text preview: CE 332 Page 1 Selecting a Design Professional CE 332 Page 2 Selection Process Owner notifies selected design firms and provides Request for Proposals (RFP) Interested firms submit qualifications previous projects name of clients staff qualifications special abilities Project approach Anticipated scope Exclusions and assumptions schedule fee schedules CE 332 Page 3 Selection Process (cont.) Owner selects qualified design professionals Oral presentations and selection Owner negotiates fee Private owners may forego qualifications and just select a design professional In the public sector, the Brooks Act prohibits selection on the basis of the fee CE 332 Page 4 Methods of Design Professional Compensation CE 332 Page 5 Compensation for Basic Services 1. Percentage of construction cost 2. Cost reimbursable (time and material) multiple of direct personnel expenses Fixed fee plus expenses 3. Fixed price CE 332 Page 6 Percent of Construction Cost Multiply construction cost by a specified percentage, ~ 8% Advantages: avoid bargaining over the fee minimal recordkeeping Disadvantages: No incentive to reduce construction cost fee may not reflect the design effort CE 332 Page 7 Percent of Constr. Cost (cont.) Applies to basic services only (see AIA B141 Agreement between Owner and Design Professional) Percentages vary with the project to reflect the anticipated work effort: residential vs. commercial single contract vs. multiple contracts lump sum vs. cost reimbursable CE 332 Page 8 Percent of Constr. Cost (cont.) Can be applied to a wide variety of commercial projects, especially where the scope of work must be defined by the d.p. and where the owner has little or no capability to monitor cost The main issue: Can the effort required be reasonably estimated? If yes, then this approach will work. CE 332 Page 9 Cost Reimbursable - Multiple of Direct Personnel Expenses Multiplier ranges from 1.5 to 3 Provides for overhead and profit What are direct personnel expenses? See B141 direct salaries and fringes Advantages: relatively simple not a disincentive to spend extra time to do the best job (unless Not-to-exceed (NTE) cost established CE 332 Page 10 Cost Reimbursable - Multiple of Direct Personnel Expenses (contd) Disadvantages: requires detailed cost records of exact time spent, which project, nature of the work, and who did the work more work, more fee Applied to projects where scope is not well defined and the owner is not worried about design costs, as compared to construction costs....
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This note was uploaded on 04/11/2008 for the course C E 341 taught by Professor Scanlon,andrew during the Spring '07 term at Pennsylvania State University, University Park.

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3 - Scope of Design Professional Services - CE 332 Page 1...

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