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

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. ...

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. ...

Definition - Development (Talent)
Longer-term refinement of someone’s current capabilities Towards Mastery while preparing them for future roles and the ideal Career Path for them.
Retirement Onboarding - When is it Too Late to Start My Retirement Planning?
“The best time to plant a tree was 20 years ago. The second best time is now.”
Succession - There is No One Best Way
As systems become more complex (or V.U.C.A.), such as operating a company or succession planning, there is not a single “One Best Way” that will work in all situations.