Fee Calculation Methods




Method Description Best used Advantages Disadvantages Advantages Disadvantages

– Fees calculated for a total sum of money for a clearly defined package of services and payable in agreed stages

– Can be revised at agreed intervals in accordance with Average Earnings Index

– Where the scope of works can be clearly defined from the outset but where there is no firm project cost

– Parameters of services must be clearly set out (time, project size, cost) so that if they are varied more than agreed amount, the lump sum is also varied.

# Unwise to agree for LS without provision of variation.

# Time charges often used for variations

– Knows exactly what he’s going to be paid

– The limit of spent is known

– A risk, if anything goes wrong the practice may lose money yet have no justification for revision of the sum unless variations are agreed with the client.

– Cost control

– The limit of spent is known


– % of the total construction cost

– establish provided services, approx. budget and nature of work first

– For straightforward landscape design and construction projects, when the construction cost/budget is known.

– No complicated calculations for fee tendering

– If the budget/tender price is high, the consultant will achieve a high fee

– It’s based on a calculated budget for landscaping which might not reflect correctly the value of works required from LA

– Vulnerable to market forces

– If tender figure lower than estimate, the consultant loses

– No flexibility

– Cost control – Doesn’t know if he’s paid for the respective amount of work the consultant is involved in

Charging all time reasonably expended by relevant personnel on the performance of the services required for the project (incl travel time) at agreed rates.

Rates can be revised at agreed intervals in accordance with Average Earnings Index.

– Where the scope of works cannot reasonably be foreseen

– Where services cannot be related to the amount of landscape construction costs

-Best practice would be to agree a figure with the Client that is not to be exceeded.

– Freedom of charging according to time spent on job

– Paid for all the hours worked on the project, incl work not anticipated at the outset or abortive work

– Faster response to a short timescale

– Pays only for the work done

– No cost control

– Open-ended with uncertainty regarding the total financial commitment until the job is complete

– May seem that LA has no incentive to work efficiently

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