Guide to Using the RIBA Professional Services Contracts 2018 - Other - Page 48
Contract terms
z 47
PSC. They are generally paid in instalments based on regular dates or at predefined
stages of completed work.
There is no standard or recommended basis for the calculation of the fee. The fee will
reflect the degree of personal service and bespoke design that the project involves.
Other factors will include the anticipated duration of the project and the location and
size of the practice, its reputation and specialist skills. This section covers the matters
that the Architect/Consultant needs to consider when setting up their fee proposal.
Calculating the fee
The calculation of fees can be a complicated and risky process, particularly if the
Architect/Consultant is in a competitive marketplace. Fees are entirely dependent on
the nature of the project and the circumstances of the appointment. Large new build
projects may attract lower percentage fees than small works to existing buildings,
commercial work may attract lower fees than private residential work, works to
historic or listed buildings may attract higher fees, and so on.
Following the initial meeting to discuss the Client’s needs and requirements,
the Architect/Consultant will need to analyse the Brief, prepare a Schedule of
Services and a fee. Consideration will need to be given to the appropriate minimum
and maximum levels of service whilst remaining competitive within the Client’s
requirements. The Architect/Consultant should make clear what is included and,
more importantly, what is NOT included to leave no misunderstanding, particularly
with new or inexperienced Clients.
Factors affecting the fee will include:
• Architect/Consultant’s costs and time charge rates, which relate to geographical
location, practice size, reputation and specialist skills
• the extent of the Architect/Consultant’s services and the type of procurement
• the size and complexity of the project and any project-specific requirements
(charges generally decrease as the size of the project increases, due primarily to
economies of scale)
• refurbishment and extension work to existing buildings which are likely to be
significantly more resource-intensive
• repair and conservation of historic buildings which is more complex, and the fee
will be proportionately higher
• repetition, i.e. where there are a number of houses or factory units to an
identical design occurring on the original site, the Basic Fee may be adjusted in
recognition of the reduced resources required.
The fee can be calculated in a number of ways, including percentage fees, fixed
and variable lump sums and time charges. The latter is useful for services such
as surveys or party wall advice, or where the resource requirement is harder to
predict, e.g. for contract administration duties. The Basic Fee will cover ‘normal
services’ and the fee for any specified ‘Other Service’ should be identified and, as
applicable, state whether it is charged on a time basis or as a lump sum or whether
it is included in the Basic Fee. If performance of management roles is required,
e.g. Lead Consultant, Lead Designer, Contract Administrator, Architect and, say,
as Access Consultant, consider whether the fee for any of these roles should be
charged separately.
Item F of the Contract Details should be completed to specify the way in which the
Fee has been calculated. It is shown as a free-form box to enable the Architect/
Consultant to complete the details and fees to suit the particular project and to break
down the fee as appropriate. This can be in RIBA Plan of Work Stages or a total fee
for the work or sections of the work. Alternatively, if the fee is comprehensive or for
multiple roles, the fees can be presented as a separate document by reference to
it in item F and attaching it to the PSC as a numbered appendix if the space is too
47
