Version Posted: March 2012

The competitive negotiation of A/E fees represents some of the most important proactive dollars expended on a project. These funds are an investment that affects both the quality and successful completion of a project. It is for this reason that the schedules used as a guideline for determining fees by the Department have been updated to reflect the current market conditions. The original fee guidelines were generated in 1969 when the Engineering News Record (ENR) Construction Cost Index was 1,269. The published 2011 ENR yearly average Construction Cost Index was 9,088 which represents a 716% rise in inflation and, subsequently, a significant shortfall in the fee guideline calculation . As a result the formulas used in the fee guidelines have been updated in order to be marketplace relevant and will be reviewed on a three year basis.

 

DEFINITIONS:


Basic Services:
  The fee guides shown on the following page labeled "Fee Calculator" are for "basic" architectural and standard engineering services including full service phases for design, bidding and construction.  The fee is only to be used as a guide, with the actual fees justified by the architect or engineer via a detailed proposal in accordance with the format established by the Division of Real Estate Development and Management.

 


Additional Services:
Additional services are not included within the "basic" fee guides.  Additional services may include any special consultants required by the project and are typically those furnished beyond what is shown in the Form of Agreement Between Owner and Architect-Engineer used by the Division of Real Estate Development and Management.  Additional services, including but not limited to those itemized on the next page labeled "Fee Calculator" shall have additional fees/expenses negotiated based on the project specific scope of services.

 

Formulas: ("Fee Calculator" formulas are provided for informational purposes.)

 

"A" Curve - 0.187547-(0.01836*LOG(Construction Cost/7.16))

"B" Curve - 0.164145-(0.015303*LOG(Construction Cost/7.16))

"C" Curve - 0.142432-(0.010594*LOG(Construction Cost/7.16))

"D" Curve - 0.141419-(0.01236*LOG(Construction Cost/7.16))

"E" Curve - 0.118011-(0.009279*LOG(Construction Cost/7.16))

"F" Curve - 0.09521-(0.006301*LOG(Construction Cost/7.16))

"G" Curve - (EXP(-0.460517*LOG(Construction Cost/7.16))+(0.0075*LOG((Construction Cost/7.16)/100000)))