Relationships, Phasing & Fees

ME 425 Keith Elder, P.E.

Plan/Spec Organizational Structure
Financing Taxes Real Estate Owner/ Developer


General Contractor

Mechanical Engineer

Structural Engineer

Other Engineers

Mechanical Sub

Electrical Sub

Other Subs


Design/Build Organizational Structure Financing Taxes Real Estate OWNER Architect General Contractor ( Early Involvement ) .OR Sub Contractor Team/Build & Modern Organizational Structures Civil Engineer Structural Engineer M echanical Engineer OW NER DEVELOPER Taxes Finance Real Estate Electrical Engineer M echanical Subcontractor Electrical Subcontractor General Contractor 2 .

Design Phases Concept Schematic Design Design Development Construction Documents Bidding Construction Administration Determining Fees Projects with Well-Defined Scopes Selections Can be Made Based on Price Design Costs (if any) are Included Projects with less well-defined scopes Selections Made Based on Qualifications Design Fees are Negotiated Usually Requires a Fee Proposal 3 .

500.000.000 $10.000 Total Design Fees 10.000.000 $5.3% 5.0% 9.000 $1.5% 8.000 $500.000 $3.5% 4 .0% 7.5% 7.Fee Structures Fixed Fee Percent of Construction Time & Expense Using Multiplier Time & Expense Using Rate Schedule Typical Fee Percentages Total Construction Cost $ $1.000.0% 8.000 $20.0% 6.

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