2. Professional appointment Flashcards
Can you tell me some ways of calculating fees?
There are three main fee calculation methods lump sum, percentage and time charge.
Retainers can also be used where we are paid a certain amount to work on as needed basis
They’re also incentive fees that can be used to incentivise certain results such as getting planning permission
And there is also pro bono work so work for charity which is done free of charge or for reduced rate
What is a lump sum fee?
A lump sum fee is that which is calculated in one lump sum. A total fee is given for a clearly defined scope of work.
This can be revised with the client at a later date if necessary. A lump sum is best used when the scope of work is clearly defined from the outset but there is no set project cost services must clearly set out time, cost and project size. The option to add variations are almost always set out in the contract. This is the most common method of a fee proposal at define.
What are the positives and negatives of a lump sum fee?
The positives of lump sum fee are that an exact payment amount is known so there is certainty for both the client and the consultant. This is also good cost control for the client and insures there is good flow of money.
The negatives of a lump sum fee are that it’s a risk if anything goes wrong for example of time is wasted through the fault of a consultant without justification the consultant will lose money. There is also the risk of scope creep which leaves you out of pocket.
What is the percentage fee?
A percentage fee is that which is calculated by signing your work a certain percentage of the total construction cost allocation. Services, budget and the nature of work are all agreed at the outset. This is used for straightforward landscape design and construction project when the final construction cost are known.
What are the advantages and disadvantages of using a percentage fee?
Advantages are that fee calculation at tender is less complex. For the consultant if the overall project budget is high than the fee will be too and it provides good cost control for the client.
The negatives are that the budget for landscape works may not accurately reflect the value of the work and there is no flexibility .
What is a time charge fee?
A time charge fee is that which is charged based on all time reasonably spent on a project. This is best used when there’s a good working relationship between the client and the consultant and good trust it’s also really beneficial in the scope of works cannot be foreseen. it’s best to agree ceiling figure with the client and regularly discuss progress. Ebbsfleet is an example of a time charge fee.
Absolutely began as a lump sum fee, but the scope turned into much more work that was originally foreseen and so a time charge fee made the most sense.
What are the positives and negatives of a time charge fee?
The positives are that there is more freedom for the consultant, they paid for all of the hours worked on the project and this includes work that wasn’t originally anticipated. there is faster response to changes to the scope and there’s less paperwork and admin as there are no fee proposals having to be written and the client pays only for the actual time on the project.
The negatives of a time charge fee are that there is less cost control to the client, less certainty to the consultant and the consultant may take advantage and work less efficiently so regular progress meetings are required to keep control of the budget
How would you charge for public consultation?
If the duration of the public consultation is known and it can be charged as a lump sum based on time spent preparing, travelling and participating. If further away the travel cost will increase although travel expenses are often charged separately if the duration is not known then a time charge fee could be used.
How would you produce a competitive fee?
This is a balance of how much you want to win the project and how much of a financial sacrifice you are willing or able to make. It can be a benefit to lower rate with a new client to get a foot in the door and build relationships to provide future work. It may also be necessary if you were struggling for work.
What methods of appointment are available to landscape architects?
Direct appointment for private only
Competitive fee tendering
Design competition
Framework
Find a tender
What would you consider in preparing a fee proposal?
I would ascertain what fee type is the most appropriate depending on the nature of the project the size, timescales and the client relationship. I would then check with the client the scope of services that’s required. Check if we have the resources in the competency to undertake the work and consider the work stages and if the fee can tie into these.. I would also set out any exclusions
What are the four types of competitive tendering procedures in the regulations for public procurement?
Open procedure, restricted procedure, competitive two stage and negotiated.
What is an open tendering procedure?
Open tendering is when anyone can be invited to tender for a project
What is restricted tendering procedure?
The restricted tendering procedure is when tender is have to complete a prequalification questionnaire, they are then shortlisted and those are asked to submit their tender.
What is competitive two-stage tendering?
Competitive two-stage tendering is when tenderers are asked to complete a questionnaire then shortlisted and asked to tender and the successful tender is chosen based upon a combination of quality over cost not cost alone.
What is negotiated tendering?
Negotiated tendering is the same as competitive tendering but tenders negotiate the final fee
What should a fee proposal contain?
A fee proposal should contain the scope of works, i.e. the technical information that’s required, design team information and sometimes an initial design approach. The proposal should then set out the work stages alongside of the program and the terms and conditions and any assumptions and exclusions.
How are fees calculated on a competitive basis?
Fees are calculated using an hourly rate multiplied by the hours required. The hourly rate should include all overheads and profit.
What factors should a landscape architect consider an entering into legal relationships?
We should consider the client, do they have the financial resources and the appropriate approach to commission the work? Are there any conflicts of interest? Is there anything in this project that goes against that code of practice? Do we have the relevant expertise or are we competent? Do we have the appropriate resources? Do we and the client have the correct insurance and any collateral warranties present?
What are the four key elements to the landscape consultants appointment?
Conditions of appointment
Memorandum of agreement
Scope of services
Schedule of fees and expenses
What are some examples of disbursement?
Tree surveys, planning application fees, topo surveys and soil testing.
We would pay for this and agree that the client would pay it back . These are things which is advised to the client pays for directly we should not be lending money as it is a financial risk to us.
What is the framework agreement?
An agreement with the supplier to basically give them repeat work based on the same terms and conditions. Each project will have different contracts with the same terms and conditions. The most common example of this is in the public sector. Often a council will have framework agreement with one or several contractors which have all agreed to certain terms and costs in response to a tender. These contractors can then form a list which jobs are awarded to.
What are the advantages of a framework?
Consultants only have to once
They only deal with one or a small number of contractors so this can mean better relationships
Increased work efficiency due to repeat nature
Increased certainty of the time, cost and quality
And it’s a good platform for local training and employment programs
What are your responsibilities when acting as the clients agent?
We have a responsibility to apply reasonable skill and diligence in all work and carry out a duty of care to the client
We should not delegate authority or take bribes or profits
And we may be asked to sign off work or contracts and make payments on behalf of the client if agreed
