Fee Structures for Preconstruction Services and CM@Risk Projects

How much should you charge? How much can you charge? How should you structure it? What do you really want out of it?

Raymond Braswell Profile Picture
Share
Contributors David Brown Profile PictureDavid Brown

Answering these four questions sets the stage for effectively selling your preconstruction services.

Remember that your #1 priority must be leveraging your preconstruction services putting you in a position to build the project at a profitable fee level.  

  • Know how much your precon services cost on average as a percentage of the total project value.  Start with 0.5% to begin with if you don't know. 
  • Start tracking your costs so you learn more about the actual cost for the services you are providing.   
  • Develop a proposal and contract that will get you reimbursed for your services if you are successful at getting the customer to a constructable budget but they choose not to use your construction services.
  • If they do choose to use your construction services then the preconstruction services fee can be rolled into the General Conditions.  
Precon and CMAR: Fee Structures for Precon and CM at Risk Work.

There are obviously a lot more nuances than this but these are the basics to start with.  

 

Learn more about building Advanced Preconstruction Services and Business Development capabilities along with other General Contractor Solutions for profitable growth in all economic conditions.   


Fee Structures for Preconstruction Services and CM@Risk Projects
Dominate your competition by contracting for preconstruction services while projects are still concepts on scratch paper. This series of videos will look at the preconstruction process from the perspective of the Project Owner, Architect, and Contractor. ...

Fee Structures for Preconstruction Services and CM@Risk Projects
Dominate your competition by contracting for preconstruction services while projects are still concepts on scratch paper. This series of videos will look at the preconstruction process from the perspective of the Project Owner, Architect, and Contractor. ...

Responsibility Assignment Matrix (RAM) and Contractor Growth
A responsibility matrix is a simple but powerful tool for helping everyone on a project and in the company see who is responsible for what. With a few added columns, it can easily indicate when, what tools, and link to the "how-to" procedures.
Resource - Stratified Systems Theory (SST) and Timespan 101
All contractors navigate through very predictable stages of growth, delivering larger and more complex projects. Business complexity evolves requiring different capabilities at all levels. Tom Foster lays out some of these key differences very clearly.
Organizational Change and Sustainable Growth
Improving the rate that change is adopted across the whole company becomes increasingly more important and more challenging as a contractor grows. We will cover the basics of change, including how it is linked to strategic choices and management.