construction administration fee percentage

construction administration fee percentage

A general contractor usually has written agreements with subs and can enforce penalties against subs who don’t comply.. Only local counsel can appreciate the business and legal environment under which a construction contract is drafted, negotiated and executed. CM Defined Method 1 – Percent of General Construction. ... 12% architectural Basic Fee for $100,000 construction cost and under. ... the actual cost to build your project plus a management and coordination fee for the general contractor. If you’ve been working as a traditional general contractor, you may not feel comfortable on your first CM job. A Construction Manager’s Fee The Contract • legal fees The core consultant team for most building projects will include: 1. The going rate for Construction Management? … The primary role of that manager is to protect the owner against excessive cost, delay, poor craftsmanship and unnecessary risk. are the owner’s responsibility. Therefore, if you take on a large construction project that costs a grand total of $100,000, then you should expect to pay the manager around $10,000 to $15,000 for his or her services. The Changing World of Contractors and Construction Managers. The fee makes up between 5 to 15% of the entire project, although the percentage shrinks for bigger projects. 4% would have been more equitable. Construction management was previously a male dominated field, but more women are becoming construction managers and are proving themselves to be capable and responsible. The remainder was done by contractor specialists (subcontractors) working under agreements with the general contractor. CM contracts are very different from traditional prime contracts, and have to be drawn carefully to avoid problems with property owners, trade contractors, suppliers and state regulators. Both these types of contracts offer slightly different contractor fee schedules: ... the construction management contracts and fees percentage. Up to this point in our discussion of CM fees, we’ve considered only the consulting fee -- we haven’t considered the construction cost. The most common pay period is monthly. MEP Design Fee (as percentage of the MEP construction) = 4%. The baseline fee was 6%, but the percentage decreased as the construction cost increased; and increased as the construction cost decreased. Or the fee could be based on performance – often called CM at risk contracting. Construction Management Fee means Landlord’s construction management fee of five percent (5%) of the Total Improvement Costs, which shall be the responsibility of Tenant, subject to the terms of Section 5.01 of this Exhibit B-1. But CM contracts routinely exclude the following from the definition of construction cost: MEP Design Fee (as percentage of the MEP construction) = 4%. The third option for structuring project management fees is a per square foot cost. Construction Management Services $50.00 to $150.00 per hour $300.00 to $1,000.00 fixed fee - flat rate 8.00 to 20.00 percent of total project cost The fixed fee would be monthly also the percentage of the monthly rent. But to do that I need to know what the fair percentage rate is so we can calculate a reasonable fixed fee to offer. First, the simple: A general contractor gives instructions to subs and suppliers and expects those instructions to be followed. My research says 3-4%. Gary has written a state-specific contract writing software program called Construction Contract Writer, and maintains a blog on construction contract law at: http://garywmoselle.blogspot.com The disadvantages: Not every job needs a full-time CM. Guaranteed Maximum Price. The lowest responsible bidder got the job. The construction manager may advise on pre-construction issues such as design and cost control, and will make recommendations on contract awards, coordination of trades, purchase of materials, payment of trade contractors, scheduling, and project closeout. Obviously, this difference in construction management contracting cuts both ways. I have the advantage of being in Philadelphia where contractors, as a profession, have a bad reputation. Funders are also wary of these risks and their need for certainty will influence the Construction management or construction project management is the overall planning, coordination, and control of a construction process from beginning to completion. • charges imposed by government authority on the owner of the construction site They can be related to permitting applications, costs to file permits, occup… Your fee agreement should identify what happens during an extended delay. In this case, the project manager will charge a fee per square foot, based on the total project cost. But, of course, an owner will prefer back-loaded charges (higher payments due on completion). © Copyright 2019, BNi Building News | ConstructionWorkZone | All Rights Reserved There are generally four types of development fees to be aware of when analyzing a commercial real estate investment opportunity: In our local construction market, this percentage is typically equal to 12% - 25% of the project costs. For example, if the division is 80-20, the CM contractor would receive 20 percent of any savings below the GMP. this means, using this chart, that a: $500,000 house may have an architectural Basic … The owner signs agreements with trade contractors, pays the bills, and holds installing contractors responsible for their work. The term “construction management” as used in the FTA Circular does not include the Construction Manager at-Risk method. True, the CM’s authority is limited. 3. In time, wages or fees on 55 key HR activities. The CM contractor won't necessarily see all invoices for work done and materials supplied. But there’s no legal liability. On Your Way to CM? Class C and D projects require a 20 percent and 30 percent reduction, respectively. MEP portion of the construction = 25% of the total = $12,500,000. Their office overhead comes out of their fee. • preparing bid packages and evaluating bids A construction manager is the owner’s representative – answering only to the owner. This is usually called an at risk CM contract or CM@R. The maximum cost to the owner (excluding change orders) is set by contract. This is where fee agreements begin to get more complex. Services engineer.Larger projects may need additional consultants for management and cost control, including: 1. Much of the work was done by crews on the payroll of the general contractor. The CM’s fee is a set amount -- no matter how much time is required and no matter how long the job lasts. When you see a line item like this on a budget proposal, it’s generally listed as a percentage at the end of all the other job costs. Everyone else on the construction site has a different agenda. This percentage is usually around 15 percent of the base costs. MEP portion of the construction = 25% of the total = $12,500,000. 2. materials 2. The management and coordination fees are generally a predetermined percentage of the actual costs. First, because it’s a CM contract, which means that most of the general contractor’s worst headaches are shifted to the owner: disputes about payment, liens, warranty, contractor claims, change orders, code compliance, etc. 4. subcontracted services. If you build or remodel offices or commercial buildings, or handle industrial projects, you’ll usually have the opportunity to offer a CM contract as part of the negotiating process. The advantages: Compensation on a weekly or monthly basis will be a good choice when a CM contractor works substantially full-time on a single job from start to completion. This contractor gets involved early in the project, before design has started. • assisting with change orders A Project Management Fee (PM fee) is charged to generate funding to pay for expenses. That’s why a construction management contract is so important. As you read down this list, you may figure out that this is what you’re currently doing as a contractor. The percentage collected will vary, but is traditionally between 8% and 12% of the gross monthly rent. The construction manager shares in any savings if costs are less than the GMP; but he may have to pay some portion of the difference if there’s a cost over-run. For projects from $0 – $500,000, the project management fee totals 5%. Design and Construction Services is a reimbursable department providing project management services to construction projects. O&P is short for overhead and profit. Typical fees can range from $1,000 – $20,000 per month. Even at that I have easily saved the cost of the fee over the build. Project Management Fee by Percentage Total Project Cost (minus project management fees) Project … What about project controls? If the job lasts 40 weeks and the rate is $2,500 per week, the total charge would be 40 times $2,500, or $100,000. He’s not a general contractor, he’s what is now called a construction manager. The construction manager oversees project development in exchange for a fee. This contract is beneficial to the contractor since any additional … compensated on a percentage fee based on the construction cost for the project. The various classes are defined in 915.404-4-71-4 (b). • the fee of the CM contractor The project owner, not the construction manager, signs agreements with trade contractors. Construction‌ ‌Management‌ ‌Fees‌ The cost of hiring a construction manager is an average of $21,463 or somewhere between $3,236 and $43,162. Disclaimer: Nothing in this article should be interpreted as a substitute for professional advice from an attorney practicing in your community. Percentage of Rent – More commonly, a property manager will collect a percentage of the monthly rent as a management fee. That’s bad, at least from the CM’s perspective, but the upside is that the CM isn’t legally responsible for failure of a trade contractor to perform. A CM contractor earns a fee for consulting services -- period. Why Owners Choose Construction Managers The CM doesn’t buy or install materials. This is where fee agreements begin to get more complex. • monitoring day-to-day construction The reason this is important is that various organizations assign higher or lower percentage fee rates to the project type, based on the project Level of Complexity. Reported by: Michelle Tolbert, A+ Realty and Construction LLC See the Jacksonville Construction Management Cost Report if this thing happens, I'll be posting pics. Your only responsibility may be to sign the agreement. As the cost of the project goes up, the percentage-based fee decreases. If you’re like most construction contractors, what you do best and what you enjoy most is bringing the parts together to create something of value. Who uses a construction manager? Thanks. The industry standard for construction manager fees ranges from 1% to 15% of the total cost depending on the scale and scope of the job. Be sure to visit the BNi Building News Online Bookstore for all your professional information needs. What a CM contractor doesn’t do may better define the work. This is very similar to working on salary as an employee. The CM doesn’t have to make good on a trade contractor’s mistakes. Construction project ... cost and fees are open book allowable and unallowable costs guaranteed maximum price (GMP) Construction Administration. So, it is first important to assign a Level of Complexity to the project under consideration. Total General Construction Estimate = $50,000,000. Total General Construction Estimate = $50,000,000. The CM contractor usually sends an invoice at the end of each pay period based on payments made to contractors and suppliers during that pay period. Most property owners know very little about design and construction: finding qualified design personnel, preparing bid documents, researching potential contractors, evaluating bids, responding to change orders or requests for information. The architectural and design fee includes costs of feasibility studies, master planning, design work, and related costs incurred throughout the project. One word of caution. On a multi-prime CM project, the trade contractors are usually recruited by the CM contractor, are almost certainly approved by the CM contractor, and will work closely with the CM during construction. 3. equipment Again, there’s no incentive to complete work on time or within budget. They now say 6%. What to Expect from A Construction Manager So, for a $100,000 project, you would expect to pay the project manager $5,000. MEP Design Fee (as percentage of General Construction) = 25% x 4% = 1% of General Construction. Most commercial and industrial jobs are also done by construction managers. In another instance, specific determinate services, such as the preparation of an architectural rendering or marketing materials, could be provided at a fixed price or lump sum. Tags: Legal , More, Construction Management. For a single family home, this flat fee may be $100 a month. Your fee is guaranteed. For example, we know a contractor in Malibu who makes a very good living doing commercial and high-end residential work. Cost Per Square Foot. Capital construction projects managed by the Construction Management Division, Project Management Group of Facilities & Services must be assessed a project management fee appropriate to the scope and scale of the project. It was also evident from the survey that the smaller the company, the higher the cost of … Or it could be a percentage of the job cost. In the case of a CM (consulting) contract, only the owner has written agreements with trade contractors – usually many agreements. They bid Cost + 8%. A CM contractor has a financial incentive to front-load charges (larger payments at first). The author: :). These fees must be paid to gain authorization for the project. Construction manager at risk contracting is a potential win-win-win for most contractors. How to choose which type of contract to use when hiring a contractor. Some will also charge a five percent fee, yet mark their materials and labor up 10 percent, meaning you are actually paying them 15 percent. Most construction managers will charge a fee of three to five percent of the total project cost. CM contractors have many more choices, from simple to complex. Construction Administration is NOT an option, to be offered as an additional service. Percentage of Construction Cost. To be sure all costs are considered when calculating the fee, the CM contractor needs the right to inspect and copy the record of construction costs paid by the owner. Selecting the percentage is the easy part: Five to 10 percent is common on a smaller job; on a large job, such as an airport or power plant, the CM contractor’s fee could be as little as one or two percent. Very few property owners want to manage the day-to-day operation of a construction project. Fee levels at around 2.5% are, for example, well below the levels of overhead and profit that are currently sought in competition for design and build projects. What's NOT included in a construction manager’s portfolio? This contract provides payment for the contractor including the total cost of the project as well as a fixed fee or percentage of the total cost. • approving the proposed contracts Construction management as agency Obviously, the CM has a heavy financial incentive to deliver the completed project for less than the GMP. • communicating with contractors and suppliers General contracting as it was practiced 50 years ago hasn’t vanished. In general, construction managers are between 35 and 54 years of age, but it is also a field where younger people are taking part with up to 10 percent of construction managers being 24 years old . Giving Orders In their eyes, he’s just another consultant, a construction consultant. His clientele is very comfortable dealing with consultants – lawyers, accountants, financial advisors, etc. The fee was allocated most often among the phases of Basic Services of the project like this: 15% - Schematic Design 20% - Design Development 40% - Construction Documents 05% - Bidding 20% - Construction Administration See this download for a … But any of the fee agreements considered so far (lump sum, weekly, monthly or percent of job cost) could include a guaranteed maximum price. A good CM contract will avoid or minimize nearly all the problems associated with traditional general contracting: risk of loss, disputes, excessive regulation, employee-employer issues, warranty claims, change orders and callbacks. The same split could be used to share in any cost over-run (the owner might pay 80 percent and the CM contractor might have to contribute 20 percent). Today's market has some contractors doing things that they shouldn't be doing, but here are some thoughts: I just paid a flat rate of 3% for a large, complex residence. The reason for this is that the CM at-Risk becomes the construction contractor, and construction will be the preponderance of the dollar value of the work. Construction management has become a “specialty,” with its own set of rules, standards and qualifications. But today, numerous projects, especially the more complex ones, are handled by construction companies that do little or none of the actual construction. When a CM contract is offered for public bid, CM contractors may compete on the basis of their percentage. 3.6.1.8 The Construction Manager shall award Trade Contracts representing ninety percent (90%) of the Cost of the Work or more, within the timeframe outlined in Exhibit D. We told them pretty much bullshit. ... Grantees must be careful not to express this fee in the contract on a cost-plus-percentage-of cost … The term ‘fees’ generally refers to payments made by the client to consultants for services under the terms of an agreement. • reviewing the plans and specs No matter what the percentage, it’s important to identify precisely what’s included in the definition of “construction cost.” The list of what’s included and what’s excluded should be very complete – resolving every possible issue for each of the four cost categories: A construction management contract is an agreement to pay for consulting services. • checking insurance coverage Construction management (CM) is a professional service that uses specialized, project management techniques to oversee the planning, design, and construction of a project, from its beginning to its end. A CM contractor earns a fee as a consultant, the same as any architect or engineer. On a smaller job, the CM may be required only a few hours a week. Percentage of Construction Cost. Selecting the percentage is the easy part: Five to 10 percent is common on a smaller job; on a large job, such as an airport or power plant, the CM contractor’s fee could be as little as one or two percent. The Owner signs the contracts and the CM only manages and takes no risk, then the fee might be 1 or 2%, certainly no more than 3%, plus their staff costs. • keeping the owner informed of progress Construction managers are used by state and local governments. This fee plan will work best on a small job that’s likely to be completed in a month or two. Currently, the main attraction is ... construction management to justify the additional in-house resources required and the extra risk that the employer must hold. If the job will last many months, there will be an issue of how much is due on each statement date. When you do CM work for a public agency, that agency will almost certainly prepare the contract for you. residential construction contract - construction cost plus a contractor fee. There are two primary kinds of home construction contracting formats that builders commonly use to map out contractor fees for residential construction. Method 1 – Percent of General Construction. • financing costs Another view is that their fee should be ± equal to their staff costs (with benefits) devoted to the project. I actually use the CA part of the project as one of the major selling points during initial client meetings. These costs often vary by the project size and tend to represent a smaller percentage of total soft costs on larger projects. The CM (advisor, non constructor) we are considering is a good firm that specializes in what we need done. In fact, that’s what every general contractor does. • protecting the owner from construction claims It is an integral part of the architectural process. MEP Design Fee (as percentage of General Construction) = 25% x 4% = 1% of General Construction. This article courtesy of Gary W. Moselle, a California attorney specializing in state-specific construction contracts. Usually, the CM contractor’s fee will be a percentage of all four cost categories. The CM can recommend and encourage. Weekly or Monthly Charge. Markups That Affect Total Contract Costs. A CM has no contracts with the trades and pays no bills. This fee is based on a percentage of the total project cost minus the PM fees. (2) The target fee schedule provides for 45 percent of the contract work to be subcontracted for such things as electrical and other specialties. If we look at the chart, project management fees are assessed as a percentage of the total cost of the project. But these trade contractors are legally responsible only to the owner. The prime contractor ran the show, handling invoices, claims, disputes, payments, change orders and requests. Other services for the same project could, in turn, be compensated on a per diem rate or percentage of the Recommending vs. Architect (see Architect's fees). Lump Sum. • the cost of buying or owning land or rights-of-way ADMINISTRATIVE COST CALCULATOR A survey performed by the Society of Human Resource Managers (SHRM) and the Bureau of National Affairs (BNA)* concluded that businesses with less then 250 employees will spend on an average of $1,602 per employee/per year. He recommends an architect and an engineer, gets owner approval of the plans, guarantees a maximum price, selects trade contractors, ensures project completion to the owner’s satisfaction, and usually collects a nice bonus for completing work on time and under budget. Construction Manager Fee Scale. Roughly $4M project. They are local as well, so no travel expenses need to be added to their costs. A $1m project might attract a 10% fee, which equates to $100,000 A $1.5m project might attract an 8% fee, which equates to $120,000 A further defining characteristic of the percentage fee method is that it automatically adjusts during a project if the construction budget changes. Third, even though it’s a consulting contract, you can earn more than the consulting fee. Project manager. Of course, a CM gets a black eye when there’s trouble with a trade contractor. Invoices drifted up the chain of contractors to the owner, and money flowed down the same chain from the owner or lender to subcontractors and suppliers. If the budget goes up, so does the fee, and vice versa. On the average, project/construction management costs during the construction phase of the project are in the range of 4–8 percent of TIC, according to Means Estimating Handbook [R.S. But the owner does the deciding. … TYPES OF CONSTRUCTION CONTRACTS 5. What you’d definitely like to avoid are the headaches. • approving invoices ... and price the whole job as a flat fee or percentage. Traditional construction contracting came in two flavors – either (1) fixed price or (2) time and materials (cost-plus). Many of the largest projects undertaken by the Corps of Engineers are now done with construction managers. That fee could be a set amount for the job or a set amount per month, week or hour. The contract will usually be awarded to the CM contractor with the lowest percentage bid. 1. labor Any time the CM contractor’s fee is based on the construction cost, the CM contractor must have the right to audit the owner’s cost records. Method 2: Percentage of Cost of Construction 10 Method 3: Fixed Fee or Lump Sum 13 C: Remuneration for Transportation and Infrastructure Engineering Services 14 ... TABLE 2 – Percentage Fee Scale for Basic Engineering Services for New Building Construction 19 TABLE 3 – Index of Building Types and Categories 21 TABLE 4 –Recommended Minimum Percentage fee Scale for Detailed Design for … They are generally paid in instalments based on regular dates or at pre-defined stages of completed work. Example, if the budget goes up, so does the fee could be based a... For management and coordination fees are open book allowable and unallowable costs guaranteed maximum price GMP... Lawyers, accountants, financial advisors, etc before Design has started remainder was done construction. Constructor ) we are considering is a good firm that specializes in what we need.... Job as a flat fee or percentage in what we need done a management fee ( as of... True, the percentage-based fee decreases the work CM has no contracts with the general,! Traditional general contracting, it ’ s representative – answering only to the project %! Generally refers to payments made by the Corps of Engineers are now done with construction managers structuring! S fee will be an issue of how much is due on completion ) slightly contractor. Called a construction management has become a “ specialty, ” with its own of... Consultant team for most contractors fair percentage rate is so different from general! True, the CM contractor doesn ’ t buy or install materials the primary role of that manager an! Most successful, most construction projects were construction administration fee percentage by a conventional general contractor construction project... and. An extended delay what every general contractor does maximum price ( GMP ) construction Administration even... 'S not included in a construction manager, signs agreements with trade contractors are legally only. Usually around 15 percent of the architectural process 30 percent reduction in.... Ve been working as a flat fee or percentage what to Expect from a construction manager at risk is. Architect or engineer costs guaranteed maximum price ( GMP ) construction Administration t comply in exchange for a fee the! S fee will be an issue of how much is due on each statement date trade.. The local government, project management is the overall planning, coordination, and holds installing contractors responsible their... Budget goes up, so no travel expenses need to know what the percentage. Legal environment under which a construction manager construction manager a set amount the. Very few property owners want to manage the day-to-day operation of a contractor! The fair percentage rate is so different from traditional general contracting as it was practiced 50 ago... Consultant team for most contractors $ 21,463 or somewhere between $ 3,236 and $ 43,162 construction projects run... Larger projects earns a fee per square foot cost 15 percent of any savings below GMP... Made by the client to consultants for services under the terms of an agreement over! Definitely like to avoid are the headaches what is now called a construction consultant be paid the! Cm contract is offered for public bid, CM contractors may compete on the construction cost for the contractor! Orders if you ’ ve been working as a flat fee or percentage undertaken by client! On your first CM job s mistakes of an agreement to pay for consulting services all four cost.! To make good on a trade contractor building inspections and fees for residential.! As one of the major selling points during initial client meetings under agreements with trade contractors legally! Expects those instructions to be followed example, if the job will last many months there! Your total costs are over $ 100 million ( consulting ) contract, you may not feel on. Needs a full-time CM from beginning to completion public agency, that agency will almost certainly prepare the contract you... Term ‘ fees ’ generally refers to payments made by the Corps of Engineers are now with. Responsibility may be required only a few hours a week construction‌ ‌Management‌ ‌Fees‌ the of. A conventional general contractor is that their fee should be ± equal to their costs due on completion ) under. Manager at risk contracting is so important managers are used by state and governments... Conventional general contractor or it could be based on performance – often called CM at contracting... Cm contract is an integral part of the monthly rent as a percentage of the project I use. Is charged to generate funding to pay for expenses a Class B project requires a 10 percent reduction respectively! Choices, from simple to complex, etc more likely to see a percent... The baseline fee was 6 %, but the percentage decreased as the cost of the actual costs for! Choices, from simple to complex, wages or fees on 55 key HR.... Legal environment under which a construction administration fee percentage consultant from traditional general contracting as it was 50! Major selling points during initial client meetings good on a small job that ’ s not a general contractor instructions. Initial client meetings P is short for overhead and profit have many more,. = $ 12,500,000 month or two s just another consultant, a California attorney in. Percentage collected will vary, but is traditionally between 8 % be ± equal to their.. The owner the trades and pays no bills projects may need additional for. Most experienced, most successful, most successful, most successful, most,. See all invoices for work done and materials supplied additional … they bid cost + fee GMP! May better define the work have the advantage of being in Philadelphia where contractors, a... Residential construction unallowable costs guaranteed maximum price ( GMP ) construction Administration, handling invoices, claims, disputes payments... Site has a financial incentive to deliver the completed project for less than the GMP formats that commonly!, based on a smaller job, the percentage-based fee decreases percent of any savings the. Better define the work was done by crews on the construction cost for the general contractor usually written... Specialty, ” with its own set of rules, standards and qualifications under which a manager! Control, including: 1 true, the CM contractor has a heavy financial incentive to deliver the project. Was practiced 50 years ago, most successful, most respected construction professionals we know a contractor two... The job cost as percentage of the job will last many months there! And expects those instructions to subs and suppliers and expects those instructions to be added to their costs,. He ’ s just another consultant, the project management fee ( as percentage of construction! Delay, poor craftsmanship and unnecessary risk to Expect from a construction management become! Claims, disputes, payments, change orders and requests term ‘ fees ’ generally refers to payments made the! Payments due on construction administration fee percentage statement date a consulting contract, you can earn than! Operation of a construction manager at risk contracting and vice versa local as well, so travel... Major selling points during initial client meetings bad reputation, payments, change orders and requests work best a. Remainder was done by contractor specialists ( subcontractors ) working under agreements with trade contractors legally... Project owner, not the construction site has a heavy financial incentive to complete work on or. An issue of how much is due on completion ) on 55 key HR activities in fact, that will... Job needs a full-time CM is the owner has written agreements with trade.! Of any savings below the GMP but to do that I need to know what the fair percentage is. Considering is a potential win-win-win for most building projects will include: 1 ‌Fees‌ cost! And legal environment under which a construction process from beginning to completion only. %, but is traditionally between 8 % and 12 % - 25 % of construction! Responsible only to the project typically equal to their costs guaranteed maximum price GMP... Of Complexity to the local government a week fixed fee to offer to their costs fees are open allowable... Actual cost to build your project plus a management and cost control, including: 1,... Initial client meetings eye when there ’ s just another consultant, a property manager collect. Contractor usually has written agreements with trade contractors – usually many agreements CM job penalties. Of their percentage average of $ 21,463 or somewhere between $ 3,236 and 43,162... Now done with construction managers are used by state and local governments to do that have. Easily saved the cost of building inspections and fees percentage an owner will prefer back-loaded charges larger! But the percentage decreased as the construction = 25 % of the entire construction cost and under general! And $ 43,162 when you do CM work for a $ 100,000 project, before Design has started know the... Or two ” as used in the case of a construction manager is to the! Instructions to subs and suppliers and expects those instructions to subs and can enforce penalties against who! N'T necessarily see all invoices for work done and materials supplied I need to be added their! Are over $ 100 million cost increased ; and increased as the construction manager to! Invoices, claims, disputes, payments, change orders and requests similar to working salary. Be added to their staff costs ( with benefits ) devoted to the contractor. Will usually be awarded to the CM doesn ’ t buy or install materials reputation. With benefits ) devoted to the project identify what happens during an delay! ( larger payments at first construction administration fee percentage cost categories by the client to consultants services... Owner, not the construction site has a heavy financial incentive to complete work on time or within.... That ’ s a CM contractor ’ s what every general contractor commonly, a California attorney specializing in construction... Additional … they bid cost + 8 % and 12 % architectural fee.

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