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

November 9, 2015 2 minute read

Contributors

David 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.

Preconstruction Services as a Growth Strategy

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. ...

Previous Next Go To Series

Related Insights Series

Preconstruction Services as a Growth Strategy

Previous Next Go To Series

Related Insights Series

Contractor Exit Strategy 5 of 6: Sale to Management

Contractor Exit Strategy 5 of 6: Sale to Management. A very common exit strategy for contractors and one that might be integrated with passing the business down to family or used when there is no family involved in the management of the company.

Noel Tichy and the 3 Zones of Learning

When it comes to developing talent in yourself and in others, it is important to know the boundaries of the learning zone as defined by Noel Tichy in his 3 Zones of Learning model.

COVID - End of Week 5

As we end the 5th week since the first shelter-in-place orders, the country will begin to re-open. This will be uncertain and frustrating for contractors. Guidelines will change daily and won't be consistent by state, county, city, company, or contract.

COVID-19