Stagnant Percentage-of-Construction Fees Throw Designers A Curve

Korman, Richard; Illia, Tony
August 2005
ENR: Engineering News-Record;8/1/2005, Vol. 255 Issue 5, p46
Trade Publication
The article reports that in the 33 years since the U.S. Justice Department first enforced antitrust laws against engineer and architect associations, the groups stopped updating fee guidance for members. As a result, practitioners found that percentage of construction, a widely used fee determinant among many public sector owners and some private, hardly changed much in that time. Erosion of fees, combined with the changing nature and complexity of services have produced some unrealistic expectations about what engineers and architects are supposed to do. The accomplishments included adjusting the fee schedule using current construction cost indexes, adjusting the distribution of basic fees to provide more time for architects and engineers to support the construction phase and beginning the fee schedule at $500,000 worth of construction cost.


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