[fusion_builder_container admin_label=”About” hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” status=”published” publish_date=”” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”50px” padding_right=”” padding_bottom=”30px” padding_left=”” type=”legacy”][fusion_builder_row][fusion_builder_column type=”2_3″ layout=”2_3″ spacing=”” center_content=”no” link=”” target=”_self” min_height=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_image_id=”” background_position=”left top” background_repeat=”no-repeat” hover_type=”none” border_color=”” border_style=”solid” border_position=”all” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” last=”false” border_sizes_top=”0″ border_sizes_bottom=”0″ border_sizes_left=”0″ border_sizes_right=”0″ first=”true” spacing_right=””][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=””]
FIXED FEE PROJECT MANAGEMENT SERVICES
[/fusion_text][fusion_separator style_type=”none” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” sep_color=”” top_margin=”30px” bottom_margin=”” border_size=”” icon=”” icon_circle=”” icon_circle_color=”” width=”” alignment=”center” /][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]
Fixed Fee Project Management Agreements
As stated in our cost-plus section, no builder or contractor can predict future building costs as future construction market conditions are simply not in their control. For a project that may take up to a year to build, an alternative for a client that wants a “firm price,”other than using a cost-plus agreement, would be to engage the builder under a fixed fee project management agreement. This can be a win-win for both the builder and the client. Effectively the clients gets the advantages of a cost plus agreement, with the added advantage of knowing the builder is working off of fixed pre-set flat fee (the flat fee is based on a percentage of pre-negotiated project budget). Under a fixed fee project management, the builder has no incentive to make the project cost escalate, as no matter where the project cost come in at the builder still makes the same fixed flat rate management fees. This way there is no guessing and no fudge factors that need to be budgeted for.
Similar to cost plus, all hard costs under a project management formula are passed directly on to the client at the builders discounted rates, meaning you as the client are getting the builders volume discounted contractor pricing, which can range anywhere from 5% to 35% depending on the type of product being purchased.
Like cost-plus, fixed fee project management agreements can have additional advantages such as dealing with change orders. The client can make as many changes to specification and plans as they like without the worry of “added contractor mark-up” as the builder is still working off of a flat-fixed-fee no matter how many changes the client makes (within reason). (See also Cost Plus & Fixed Fee Project Management)
[/fusion_text][fusion_imageframe image_id=”1041|full” max_width=”” style_type=”” blur=”” stylecolor=”” hover_type=”none” bordersize=”” bordercolor=”” borderradius=”” align=”none” lightbox=”no” gallery_id=”” lightbox_image=”” lightbox_image_id=”” alt=”” link=”” linktarget=”_self” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]https://landendevelopment.com/wp-content/uploads/2019/03/project-management-contract-e1555295111149.jpg[/fusion_imageframe][/fusion_builder_column][fusion_builder_column type=”1_3″ layout=”1_3″ spacing=”” center_content=”no” link=”” target=”_self” min_height=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_image_id=”” background_position=”left top” background_repeat=”no-repeat” hover_type=”none” border_color=”” border_style=”solid” border_position=”all” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” last=”true” border_sizes_top=”0″ border_sizes_bottom=”0″ border_sizes_left=”0″ border_sizes_right=”0″ first=”false”][fusion_builder_row_inner][fusion_builder_column_inner type=”1_1″ layout=”1_1″ spacing=”” center_content=”no” hover_type=”none” link=”” min_height=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”#082539″ background_image=”” background_position=”left top” undefined=”” background_repeat=”no-repeat” border_color=”” border_style=”solid” padding_top=”20px” padding_right=”30px” padding_bottom=”20px” padding_left=”30px” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” last=”true” border_position=”all” border_sizes_top=”0″ border_sizes_bottom=”0″ border_sizes_left=”0″ border_sizes_right=”0″ first=”true”][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”sidebarform” id=””]
Call Us 9:00 to 5:00 Business Days
403-619-4734
[/fusion_text]