07.02 - Review Proposals for City Engineer

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01/02/2004 FRI 12:14 FAY. 218 855 1701 SER—BRAINERD Q002/003 AW ,�► MEMORANDUM 7658 Design Road,Suits 800, P.O. Box 406,Brainerd,MN$8401-0406 218.865.1700 218.856.1701 FAX TO: City of Pequot Lakes FROM: Brian D. Phelps AIA DAM January 2,2004 RE: Fee Schedule SEH No. P-PEQUO0401.00 In response to your request, we are pruviding the enclosed rate table and fee structure for your information and use. We would point out however, that rate tables are not always indicative of actual costs. Costs may vary based on the experience of the personnel per6ormiug the service. For example, a particular project may be delivered more quickly by someone at a higher hourly rate, which could result in an overall cost savings. I will break the fee structure into three areas, Architectural Fees,Engineering Fees and Hourly Rates. Architectural: Fees for architectural services can be determined by several methods. The primary method of determining fee by a"percentage of construction cost"method. The percentage decreases as the cost of construction increases. 10% $100,0004400,000 Salo 5400,000-$500,000 8% $8001000-$11500,000 7% $1,500,00042,500,000 6% $2,500,00046,000,000 5% $6,000,000 and up. These percentages are to help target a fee and are negotiable. The cost of heavy remodeling projects is approximately 1%higher. For many of our clients we begin with a percent of construction cost fee and after the project scope has been determined a fixed fee is set.Many clients like a fix fee because the budget can be finalized. Some very small projects and studies are set on an hourly not to exceed fee as negotiated with the owner. Engineering: Projects in this category vary greatly and are difficult to determine a fee structure. On average a fee is set at 9% through bidding and 9% fbr construction observation. On small projects and studies an howdy fee not to exceed can be set. SW EW HwWftkw Irr. • Yw T=Wd%am • EquW 0wriu Yy ErM"r