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Fee structure

MonkeyElkHunter's picture

Fee structure (post #194956)

MonkeyElkHunter on Tue, 10/26/2010 - 13:56
in

I have been asked to project manage a commercial remodel. I have almost all of my work experiance  in residential. What is the fee structure for a commercial remodel? is it based on a percentage, a flat fee, or based on an hourly rate? 

-A +A

Not to be a wise guy but in (post #194956, reply #1 of 2)

by JerraldHayes in reply to MonkeyElkHunter [original] on Wed, 10/27/2010 - 17:20

Not to be a wise guy but in regard to:

" ...is the fee structure for a commercial remodel? is it based on a percentage, a flat fee, or based on an hourly rate?"

the answer is yes.

In other words it could be any one of those. It really depends upon just what the project is as to which will work best but I generally dislike and discourage the "percentage" method in that determining just what is the correct percentage to use is rather arbitrary.

By the time you have actually done your homework and figured out just what percentage would be fair and accurate you've figured out enough to ask for a flat fee or pin down a weekly rate.

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J. Jerrald Hayes
Quietly Re-Thinking Out Loud: Exploring New Paradigms for How We Manage What We Build

beware (post #194956, reply #2 of 2)

by BobR71 in reply to MonkeyElkHunter [original] on Mon, 11/08/2010 - 08:28

Like the last guy, I don't mean to be a wise guy but be very careful. I have worked for many years in residential and just as many in commercial and outside of the basics like plumb, level, square you are dealing with a very different beast. The materials, techniques, subcontractors, fee structure, insurance, permits, etc. are all very different. You can find yourself lost and overwhelmed very quickly. I don't know what you mean by commercial either. I am talking about office buildings, large retail spaces, schools, medical complexes, etc. not a small restaurant or small retail space. Those small commercial jobs are a little similar to residential and easy to handle. All this said, nothing is impossible, It certainly isn't brain surgery. Just know what you are getting into. 

 

Good luck