Fee Proposal


The assignment is to prepare a mock fee proposal based on the following information: An owner of a 3 acre parcel of land has contacted your firm to provide a fee proposal to design a 25,000 square foot, 6-story office building (structure only) and all associated site work (grading, drainage, parking, civil utilities, etc….site electrical design is not required). The surface parking area will accommodate parking for 250 vehicles. Storm water retention on site will be required and an existing sanitary main runs adjacent to the site.

Include the following in your proposal:

-Scope of Work to be performed by your firm. (Note: The scope should be full design to meet the Owner’s requirements including structural and site design. Your firm will also provide geotechnical work, surveying, and a Phase I environmental survey) No architectural, mechanical, electrical, or any other design will be required. The owner will be contracting for this work separately.

-Estimated Lump Sum Fee to complete the design ready for bidding. (Note: This will require you to estimate the number of hours for each labor classification to complete the design). Likely labor items will include: Senior Engineer, Civil Engineer, Structural Engineer, Draftsman, Clerical, Surveyor, etc. Geotechnical work should include the cost of the drill rig. Provide backup for the lump sum total. In other words, show the number of hours, unit cost and total cost for each labor classification line item.

-A unit price listing of hourly rates for various positions in your firm. (Note: These rates will be used to negotiate any additional work should changes arise during design) Be sure to use a fully marked-up rate for each classification to cover overhead expenses for your firm.

To clarify, you are presenting a fee proposal for engineering (design) services…not construction cost. In other words, your are estimating the number of hours required to do the design for each of the required engineering positions…civil engineer, draftsman, geotechnical engineer, etc. required. In general, the unit billing rates for these professions are approx. 2.5 times the pay rate. For example, if an engineering firm pays a civil engineer $50/hr., the billing rate to a client would be $50 x 2.5 or $125/hr. Your assignment should be in a letter format addressed to me (the client). All other information is provided in the assignment description above.

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