Establish a fair and honest fee for the work Make sure that the Agency has developed a clear and

1. DPW BD&C PresentationConsultant Fee Negotiations 9-07 Establish a fair and honest fee for the work Make sure that the Agency has developed a clear and concise program for the work The DPW PM is the arbitrator on behalf of the Client Agency for the right cost to provide an excellent design to meet the needs of the Client. If the PM is troubled with the information available he/she can be assured that the A/E will also be in the same boat. Feel free to not proceed until the program is firm or a pre- design study is undertaken.

2. DPW BD&C PresentationConsultant Fee Negotiations 9-07 • In order to start a project as well as a good program there needs to be a good B100s undertaken, so that all the various costs that might get involved have been determined, with minimum surprises • When this budget is being established, the DPW has developed over the years using external benchmarking with other similar public agencies fees that are often used as a normal practice, its own budget guidelines. This assumes that we have determined a reasonable expectation for finishes, program space and when it is to be delivered. These guidelines are an educated guess. • When a design professional is chosen and starts its fee quest with us, they should have done their homework and be able to present to you a well documented scope of work that reflects the work to be involved. At that time you then know what the true value of the work as they see it.

3. DPW BD&C PresentationConsultant Fee Negotiations 9-07 • The Negotiation Process: • You now have the tools to start – the accepted program, the budget that was developed at the time of inception, the A/E understanding of the program. If they converge you agree and continue with the A/E Contract • The normal situation is that there is a difference of opinion from the original concept to the actual fee development done by the selected A/E. If the cost is too large, the agency has two directions to take, find more money or pare down the program to fit the budget • Paring down the budget means that the DPW needs to determine along with the user agency what areas are not as important for the project to continue and then get the project cost to a level that everyone can afford.

4. DPW BD&C PresentationConsultant Fee Negotiations 9-07 • What are some of the side issues that make the process more difficult than need be? • Regardless of the size of the project, certain work items must be accomplished, therefore generating a lot of work for even small projects. A large project can afford a lot of work that is undertaken for granted, the small projects still demand these effort and therefore require a higher fee • Every project includes drawings to describe the quantities of the project and specifications that describe the quality of the project. Regardless of the project size the specifications are the same, each building generally has the same components that need to be described. The permits, environmental issues etc. are all the same therefore, the cost on a percentage is higher for these projects. • This is why it is important to DPW to hire firms that have experience with specific building types to minimize lost and inefficient learning curve time.

5. DPW BD&C PresentationConsultant Fee Negotiations 9-07 • Options for the PM to Consider • Your budget will allow some added cost considerations, there is work that is outside of the general scope of work and is considered additional services. • If the fee is not within the normal curve, you will have to be prepared to explain this to SPRB. The rationale needs to be good and well thought out, if not you have wasted everyone’s time. • The selection process gives you another option to consider, if you are not able to negotiate a fair fee then you can go the #2 on that list. ____________________________________________________ • Attachments • Helpful Hints Suggestions • Latest Budget Schedule for DPW • List of Additional Services