Project Management Cost Estimate Worksheet calculates project fee which, in most cases, is the driving force behind every design and construction project.

Project fee determines what the building looks like – size, shape, structure, building materials, air conditioning and heating systems, lighting, landscaping, etc., how much time the design professionals can devote to the project, how many design professionals will need to be allocated to the project and for how long, how much time and how many trips the design team can make to the project site, and ultimately, how much profit each participant is going to realize at the end of the project.

In determining the project fee that the design professionals should charge involves many factors. Some of the more identifiable, specific information needed is:

• Scope of the project
• Time duration for the design
• Size of the project
• Building systems
• Overall construction budget
• Project Management Cost Estimate Worksheet
• Acquiring additional training or equipment before or during design

Additionally, account for issues that can sometimes be sensitive in nature, such as:

• Past relationships with the Architect of Record, Owner, or Contractor
• Ease of working with other consultants and building officials in the jurisdiction of the project
• Experience and abilities of in-house design professionals
• Potential for designing the project at a reduced fee for some future benefit such as good-will, additional projects, or publicity

There are numerous ways to arrive at a project fee that will satisfy most of the above stated issues. By utilizing the Project Management Cost Estimate Worksheet, a more consistent and accurate fee can be estimated.

CONSULTANT FEE AS PERCENTAGE OF CONSTRUCTION BUDGET

If the overall construction budget established by the owner is known and if the Project Manager can determine baseline percentages for the different parts of the design and construction process, then a fee can be determined as follows:

Various Methods for an MEP Consulting Engineer

1 – Percent of General Construction

• Total General Construction Estimate = $50,000,000
• 25% of Total General Construction = MEP Portion of the Construction = $12,500,000
• MEP Design Fee:
  • as Percentage of the MEP Construction (4%):
    • Design Fee = $12,500,000 x 4% = $500,000
  • as Percentage of General Construction (25% x 4% = 1%):
    • Design Fee = $50,000,000 x 1% = $500,000

2 – Percent of Architect’s Fee

• Total General Construction Estimate = $50,000,000
• 10% of Total General Construction – Architect’s Fee = $5,000,000
• MEP Design Fee:
  • as Percentage of Architect’s Fee (10%):
    • Design Fee = $5,000,000 x 10% = $500,000

3 – Total Staff Requirements by MEP Consultant

• Staff Costs (Salary Plus Overhead)
  • Principal: $150 per hour
  • Project Manager: $120 per hour
  • Senior Engineer: $100 per hour
  • Design Engineer: $75 per hour
  • CADD: $50 per hour
  • Administrative: $40 per hour
• Project Requires the Following Time Commitments:
  • Principal: 30 hours
  • Project Manager: 350 hours
  • 3 Project Engineers: 250 hours each
  • 3 Design Engineers: 750 hours each
  • 2 CADD: 1,500 hours each
  • Administrative: 250 hours
• The staff costs would total $450,250
• Assuming a 10% profit, the total MEP fee for this project would be $500,278 (or $450,250 ⁄ 0.9).

Project Management is a complex, hands-on, task specific occupation that requires both the science of managing numbers and budgets, as well as the art of managing people and project vision.

A tool the Project Manager can utilize to standardize and automate the fee estimation part of the job is the Project Management Cost Estimate Worksheet. Manipulate this worksheet to change costs, percentages, pay rates, profits, markups, and project scope. It also contains a worksheet to estimate the amount of time required by the design staff on a drawing-by-drawing basis if that is customary to you or your firm.

Project Management Cost Estimate Worksheet

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