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Tariff Guidelines: A guideline to Perit Fees

Guidelines to:

The preparation of a design brief to outline the scale, nature, complexity and specific requirements of the Client’s project.

The core services that a Warranted member may be expected to offer the Client in response to this brief.

The sequential stages of delivery of core and specialist services by the Perit, and the Perit’s sub consultants.

Additional services that may be provided by the Perit, the Perit’s sub consultants, or separate consultants.

Preface

This guide has been developed to assist warranted Periti and their Clients in determining appropriate fees for their services.

For many years Periti had been reliant upon showing Tariff K demonstrating their percentage fee proposals. These were first introduced in the 1960s. Tariff K was produced in a time where expectations and roles within the design and construction industry were consistent and clearly understood. Perit services for any building project were very much the same and builders generally performed in a consistent manner based on a standard set of conventions and procedures. Therefore it was relatively easy to identify a typical fee for services of a Perit for a particular building type.

Today the situation has changed and Traiff K does not represent or convey the range and complexity of the present day Periti services. It is necessary to examine every single building project to determine the appropriate fee for a Perit service.

Increasing different Authorities

Increasingly complexity

Different forms of project delivery

Requirements for third-party certification

New demands for rapid construction And many more

Because of these significant changes in the design and construction industry, it is impossible to assume that the same professional fees will be appropriate for all projects even if the projects are of the same size and the same building type. Requirements will vary and this document will help all parties in determining the appropriate fee for Perit services for their unique building project.

This document is being sent out to all Periti to be used as a guideline for their day to day jobs as well for more complex developments.

It is most important for the success of any building project to agree in writing upon the scope of work and related budget, the scope of consultant services required, and the consequent scope of the fees. Such agreement should also outline mutual responsibilities and provisions for managing change.

This document is a continuation and an update to what was already sent out to all KTP members and was approved during EGM 2008.

I do hope that this document will help Periti by guiding them to conclude all jobs with complete professional results demonstrating a deserved profit whilst clients will start to appreciate what is

involved in the service and appreciate the professionalism that is demonstrated.

Ian Camilleri Cassar Perit

1.

Types of Fees

Periti fees for providing agreed services may be calculated on Lump Sum, Time Charge, or Percentage fee bases, or a combination of these appropriate to the nature or stage of the services agreed.

a) Lump Sum Fees are determined by pre-estimating and agreeing the cost of resources necessary for the proper execution of each section of the Perit services. Lump Sum fees are difficult to establish at the beginning of a project unless there is a clear and precise understanding of the Client’s requirements. It may be realistic to use this form of fee structure only once the design has been developed and agreed, e.g. after sketch plans have been completed.

b) Time Charge Fees are generally charged where the extent of the services cannot be readily determined beforehand. Such fees are calculated by multiplying the hours of service provided by the agreed hourly time charge rate for each service provider, to the sum of which expenses are added. At the outset the Architect should provide an estimate of the total cost of agreed services calculated this way. Such estimate should not be deemed as a cap upon the fees where services are extended under circumstances not under the control of the Perit. The Architect must keep full records of time spent on agreed services or any other work done at the request of the Client, and where fees are to be charged on a Time Charge basis, the Architect should make these records available the Client to see upon request.

c) Percentage Fees are calculated by multiplying the adjusted Cost of the Contract Works by the percentage fee rate agreed between the Perit and the Client.

The adjusted Cost of the Contract Works is defined as the cost of everything designed, selected or laid out by the Perit, the sub-consultants and the separate Consultants co- ordinated by the Perit, and carried out by the contractor as stated in the contract made between the Client and the contractor.

For the purposes of fee calculation, the cost of old materials are calculated as if these materials are new, and the cost of goods / services provided by the Client shall be calculated as if provided by the contractor. Costs shall be inclusive of all vat.

If the final Cost of the Contract Works has not yet been determined, the most recent estimate of the completed Cost of the Contract Works (as approved by the Client) must be used to calculate fees due.

d) Periti are ethically required to offer and provide services within their areas of current competence, and to advise wherever consultants with specialist skills are required. Fees for such consultants may be paid by the Perit, or directly by the Client. Either way the Perit will be responsible to coordinate their input.

e) The Perit may bear costs beyond those allowed for in the agreed fees, such as payment of statutory charges, reproduction of documents, travel expenses, communication costs, and special presentations.

Rates for reimbursement of costs actually and properly incurred by the Perit or the sub consultants on the Client’s behalf should be agreed at the same time as the fees for services are confirmed.

f) In circumstances where the Client instructs significant changes to the scope of the project, or the Client requires the Perit to accelerate, delay or extend the agreed services, the Perit will be entitled to adjust the agreed fees accordingly.

2. Building classification for the adaptation of percentage Fee

For the purposes of calculating Periti Fees core services, building types are classified according to complexity.

Within each building type, classification of individual buildings or parts of buildings may vary substantially.

Typical examples follow:

Type Class

AGRICULTURAL

Sheds (1) Stables (2) Animal breeding units (3)

COMMERCIAL

Speculative shops (1) Surface car parks (1) Multi-storey/underground car parks (2) Supermarkets (3) Banks (3) Purpose-built shops (3) Office developments (3) Retail warehouses (3) Garages/showrooms (3) Department stores (4) Shopping centres (4) Restaurants (4) Public houses (4) High-risk research /development labs (5)

COMMUNITY

Community halls (2) Community centres (3) Branch libraries (3) Ambulance and fire stations (3) Bus stations (3)

Airports (3) Police stations (3) Civic centres (4) Museums and art galleries (4) Courts of session (4) Theatres (5) High courts (5)

EDUCATIONAL

Primary/nursery/first schools (3) Secondary school (4) University complexes (4) University laboratories (5)

INDUSTRIAL

Storage sheds (1) Speculative factories and warehouses (2) Transport garages (2) Purpose-built factories (3)

MEDICAL/SOCIAL SERVICES

Clinics (3) Health centres (4) General hospitals (4) Nursing homes (4) Surgeries (4) Hospitals (5) Laboratories (5) Dental surgeries (5)

RECREATIONAL

Sports halls (3) Squash courts (3) Swimming pools (4) Leisure complexes (4) Specialised complexes (5)

RESIDENTIAL

Estate housing and flats (3) Student housing (3) Apartment blocks (4) Hotels (4) Housing for the frail and elderly (4) Houses and flats for individual clients (5)

Indicative percentage fee scales Building Category 1 = Simple, Building Category 5 = Complex

   

10,000

50,000

100,000

250,000

500,000

750,000

1,000,000

2,500,000

building

to <

to <

to <

to <

to <

to <

to <

to <

category

< 10,000

50,000

100,000

250,000

500,000

750,000

1,000,000

2,500,000

5,000,000

 

1 Hourly

9

7.75

7

6.75

6.5

6.5

5.5

5

 

2 Hourly

9.75

8.5

7.5

7.75

7.5

7.25

6.5

5.5

 

3 Hourly

10.5

10

8.25

9

8

8

6.75

6

 

4 Hourly

11.5

11

9.5

9.5

8.5

8.25

7.25

6.5

 

5 Hourly

12.5

12

10.75

10.25

9.75

9.5

8

7

Table 1: Indicated relative percentage fee levels for new work

1: Indicated relative percentage fee levels for new work Graph 1: Indicated relative percentage fee levels

Graph 1: Indicated relative percentage fee levels for new work

1 to 5 are the Building classification

   

10,000

 

100,000

250,000

500,000

     

building

<

to <

50,000 to

to <

to <

to <

750,000 to

1,000,000 to

2,500,000 to

category

10,000

50,000

< 100,000

250,000

500,000

750,000

<1,000,000

<2,500,000

< 5,000,000

 

1 Hourly

13

11.75

10.5

9.5

9

8.5

8.25

7.75

 

2 Hourly

14

12.75

11.25

10.5

10

9.5

9

8.5

 

3 Hourly

15.25

13.75

 

12 11

10.75

 

10 9.75

9

 

4 Hourly

16.5

14.75

 

13 12

11.75

 

11 10.75

9.75

 

5 Hourly

17.75

16

13.75

13

12.5

11.75

11.25

10.5

Table 2: Indicated relative percentage fee levels for Works to existing buildings

percentage fee levels for Works to existing buildings Graph 2: Indicated relative percentage fee levels for

Graph 2: Indicated relative percentage fee levels for Works to existing buildings

3.

Task to be undertaken by Perit on a complete job

Task 1

For taking the client’s instructions, preparing sketch designs, making approximate estimates of cost by cubic measurement or otherwise, submitting applications for building and/or other licenses, shall mean:

Appraisal

01 - Review the Employer’s Brief, schedule and construction budget, assess them and give general

advice on how to proceed.

02 - Advise on any need for specialist contractors, subcontractors, suppliers and consultants.

03 - Carry out preparatory work as may be necessary to determine the feasibility of the Employer’s

requirements.

Task 2 - Preparing Concept Designs plus Estimates of Cost

01 - Prepare outline proposals and develop a concept design.

02 -Prepare preliminary estimates of the cost of construction, based on estimated quantities of work

as may be reasonably inferred from the information available at concept design stage. Such estimates shall represent the best judgement of the Consultant as a design professional familiar with the construction industry.

Task 3 - Scheme Design

01 - Develop detailed proposals from the approved scheme design and submit to the Employer. If

applicable update the cost estimate and obtain the approval of the Employer.

02 - Prepare drawings and other documentation to allow the Employer to file an application to the

competent statutory authorities for the purposes of obtaining planning and development

permission.

03 - Co-ordinate, liaise and consult with the Malta Environment and Planning Authority (MEPA) and

represent the Employer in discussions with other relevant authorities.

Task 4 - For preparing working drawings and specifications, shall mean:

Production Documentation

01 - Develop detail design from approved scheme design; coordinate any work of specialist sub-

contractors, suppliers or consultants.

02 - Carry out cost checks as necessary; advise on the consequence of any subsequent changes on

the cost and programme.

03 -Make and negotiate where required applications for approvals under building acts, regulations

or other statutory requirements.

04

- Prepare production information including drawings, schedules, and specifications of materials

and workmanship in sufficient detail to enable Contractor to prepare a tender submission, or to

submit a quotation for the works.

05 - Where necessary, invite tenders and/or quotations from approved contractors; advise on

procurement methods, tender evaluation and adjudication of tenders submitted, and assist in negotiations. If applicable, assist the Employer in negotiating prices.

06 - Advise on the appointment of the contractor, where required prepare the works contract and

arrange for it to be signed by the Employer and the Contractor.

07 Review the cost estimate on the basis of prices offered by the chosen tenderer, and provide

assistance for the completion of works contract documents.

Task 5:

For giving general inspection, issuing certificates of payment and certifying accounts, shall mean:

A Construction to Practical Completion

01 - Administer the terms of the works contract; make regular visits to the site at intervals

appropriate to the stage of construction to generally inspect the progress and quality of the work and respect for design intention.

02 - Provide further information reasonably required for construction.

03 - Review design information from contractors and/or specialists.

04 - Generally inspect materials delivered to the site.

05 - As appropriate visit the places of fabrication and assembly of materials to inspect such materials

and workmanship before delivery.

06 - Give general advice on operation and maintenance of the building.

Task 6 - Certification

01 - Provide certification for completed works.

02 - Issue certificates of payment for works carried out and completed in accordance with the

relative works contract.

03 - Administer the terms of the works contract relating to the completion of the works give general

guidance on facility management.

04 - Identify defects and outstanding work, and make final inspection.

Stages of Service

The extent of core and additional services agreed to be included in each stage may vary significantly from project to project. The portion of the Architect’s fee that may be reasonably assigned to each stage may fall within the following ranges :

Task 1 :

2% to 10% median 5%

Task 2:

4% to 18% median 12%

Task 3 :

5% to 20% median 13%

Task 4 :

30% to 50% median 35%

Task 5 :

20% to 30% median 25%

Stage 6:

5% to 15% median 10%

4.

Payment of Fees

The Client will be responsible to pay:

The Perit upon delivery of the agreed services, monthly, at the completion of a service stage, or at such other intervals as the Client and the Perit agree.

Separate consultants (if any), the contractor and other suppliers of goods and services to the project, all in a timely manner.

5. Old Material or Material and Services provided by Client

When building work has been executed wholly or in part with old material or where the material, labour and/or carriage is provided wholly or in part by the client, the Perit’s fee shall be calculated as if the work had been executed throughout with new material and as if the material, labour and/or carriage had been paid for throughout at current cost.

6. Additional Services as per Tariff K

Additional Professional Fees shall be payable for the provision of the following Additional Services (for the avoidance of doubt, the following additional services are not included in the Normal Services):

6.1. For Additional Services for which professional fees are regulated by this tariff:

a. Brief: Prepare, revise and edit the Employer’s Brief for the Project.

b. Surveys: Prepare measured land surveys, take levels and prepare records of existing site

conditions and buildings.

c. Condition Reports: Make inspections, prepare reports and give general advice on the condition of the Employer’s property intended for the Site.

d.

Valuations: Inspect existing property intended for the Site and prepare a written valuation for the

Employer for the purposes of negotiating bank funding of the Project or for other commercial or tax

purposes.

f. Interior Design: Provide an interior design service and give advice on the design, selection and installation of furniture, furnishings and fittings.

g. Specialist Advice: Provide advice regarding the installation of specific specialised mechanical /

electrical installations, or other specific items.

h. Structural Design: Provide detailed structural design services of statically indeterminate

structures.

i: Record Drawings: Provide a set of reproducible record drawings, showing the Project as

constructed, and incorporating all significant changes made during the construction.

j: Revisions: Make revisions to drawings, specifications, instructions or other work prepared or in the process of being prepared for the Project, in accordance with or consequent upon:

(i) Instructions given by the Employer that vary the Project,

(ii) Changes made by the Employer to the project budget, the Employer’s Brief, time frames or work

sequences, (iii) Delays of the Employer in making decisions or providing information relevant to the Project properly requested by the Consultant, (iv) Delays or disruption by others, or

(v)

Changes in any relevant legislation.

k.

Bills of Quantities: Prepare detailed bills of quantities by trade including pricing on the basis of the

going market rates to the extent that these can be determined.

l. Measurement: Provide detailed measurement of the Works for certification purposes. m. Landscape Design: Provide landscape design services.

n. Other Applications: Prepare and submit applications, such as applications for an outline planning

permission for the Project, other than the application for a full planning permission, and advise on other work in connection with such other applications. Including providing and submitting

information to obtain Compliance Certificates

o. Appeals: Prepare and submit an appeal or reconsideration under planning legislation, and advise on other work in connection with such appeal or reconsideration; make representations to the Appeals Board of the Malta Environment and Planning Authority (MEPA).

p. Management: Provide project management services.

q. Representations: Prepare models, photographs or artistic representations of the Project at the

request of the Employer and for his use.

r. Reports: Prepare reports other than those stated in or reasonably inferred to in the Agreement, as requested by the Employer or third parties with the consent of the Employer.

t. Quality Control: Provide material quality control and quality certification services in respect of specified building materials.

u. Co-ordination: Co-ordinate the services of other consultants for the preparation of documents required for the procurement of works contracts for the Project.

v. Historical Research: Carry out historical research and grant aided work.

w. Licences: Give consent to the Employer for the use of documents or other work produced by the

Consultant in respect of the Project for purposes other than those specifically stated in this

Agreement.

x. Common Party Walls: The assessment of compensation due for rendering party walls common

Partition of Property 24 The submission of written and drawn advice on the partition of property

y. Assessment: Of value of dilapidation or improvements or assessing damage other than

dilapidations

z. Supervisor: Planning or Project Supervisor in terms of health and safety regulations

aa. Site Manager: In terms of the management of site regulations

bb.Energy Compliance: Providing Compliance certification in terms of the minimum requirements of energy performance of building regulations.

cc. Method Statements: Providing restoration method statements, or construction method

statements or other similar reports as required and requested for planning permission purposes.

dd. Court services: Services provided to the Courts as an expert to provide evidence as a witness or to attend site inspections or to provide written reports.

ee. Architectural Lighting: Providing consultancy services including layout drawing of internal or external architectural lighting proposals, for use of the electrical engineering consultant.

ff. Infrastructural works: Providing consultancy services for infrastructural works not necessarily

covered in the items forming part of the tasks in the Normal Services.

6.2. Measurement of Works or Preparation of Bills of Quantities

(a)

For measurement of work including pricing 2.0%

(b)

For detailed bills of quantities by trade including pricing 2.5%

(c)

For measurement of works and pricing which require calculations other than the measurement of

actually existing quantities and assessment of the relative prices 3.0%

6.3.

Valuations

a. Valuations of Urban or Rural Properties, prepared on the basis of the Valuation Standards issued by the Kamra tal-Periti:

When value is:

Less than

€75,000

€225

Between

€75,000 and €250,000

€225 + 0.30% of remainder

Between

€250,000 and €1,500,000

€750 + 0.25% of remainder

Between

€1,500,000 and €5,000,000

€3,875 + 0.20% of remainder

Between

€5,000,000 and €25,000,000

€10,375+ 0.15% of remainder

Over

€25,000,000

€40,375 +0.10% of remainder

The Fees payable shall be assessed on the freehold value of the property and do not include for structural surveys, condition reports, rental value or estimates for reconstruction purposes.

When the Valuation of a property involves the consideration of a wider set of parameters and sensitive market testing, the above fees may be increased by 25% on the above.

All fees are exclusive of Vat

b. Valuations of Annual Rental Value When value is:

Less than

€1,000

€75

Between

€1,000 and

€ 2,500 €75 + 5.0% of remainder

Over

€2,500 €150+ 2.5% of remainder

c. Valuations of properties subject to usufruct, shall be assessed on the value of the property as freehold, as for (i) above.

d. Valuations of an undivided portion of a tenement, whether free or emphyteutical, or subject to

usufruct, easement or burden, the fee shall be assessed as for (i) above, or on the basis of 4% of the

value of the portion so valued, whichever is the lesser fee, provided that in no case the fee payable shall be less than €100.

Note: When one valuator acts between parties, the fee shall be split between the parties in the ratio of ownership

e. Valuation of properties which includes partitioning of the property. The fee for the partitioning

only shall be assessed on one-fourth of the fee as for (i) above subject to a minimum fee of €100, or on a time basis as defined in 4.3 below.

f. Assessments of Replacement Costs for Insurance purposes (where adequate drawings for the

purpose are available), provided a priced schedule of works is not essential for such assessment.

Less than

€10,000

1.00%

Between

€10,000 and €100,000

€100 + 0.25% of remainder

Between

€100,000 and €250,000

€325 + 0.10% of remainder

Between

€250,000 and €1,000,000

€475 + 0.075% of remainder

Over

€1,000,000

€1,037.50 + 0.025% of remainder

Fees shall be calculated on the assessed current cost including allowance for demolition and clearing of site, including VAT thereon, but excluding professional fees. Fees do not include for Court attendance.

All fees are exclusive of Vat

g. Assessments of Costs of remedial works to damages sustained by property

Less than

€10,000

2.00% not less than €100

Between

€10,000 and €100,000

€200 + 0.50% of remainder

Between

€100,000 and €250,000

€650 + 0.20% of remainder

Between

€250,000 and €1,000,000

€950 + 0.075% of remainder

Over

€1,000,000

€1,512.50+ 0.025% of remainder

Fees shall be calculated on the assessed current cost including allowance for demolition and clearing of site, including VAT thereon, but excluding professional fees. Fees do not include for Court attendance. Note: The fees specified in this paragraph include any fees for valuations and measurements which may be necessary to arrive at the final value other than for surveys of land and buildings.

All fees are exclusive of Vat

6.4. Land registry form

Inputting all relevant information for a land registry form a fee of 90 euro excl. Vat is being suggested.

This fee does not include any necessary survey if required.

7.

For Additional Services for which professional fees are not regulated by this Tariff, the professional fees will be agreed to by the Perit and his client:

7.1.

Time based Fees

In cases where it is agreed between the Perit and the client that the fee for Additional Services is to be calculated on a time basis, the fee shall be computed on the basis of a fair assessment of the cost of salaries, overheads and experience and the nature and complexity of the assigned service and shall make an allowance for a fair profit. The perit is also due fees on a time basis for time spent travelling where this is beyond the normal requirement.

Services include:

a. Consultancy services

b. Attendance in court or before arbitrators

c. By mutual agreement when application of tariff creates discrepancies

d. When alterations to drawings are requested.

rate will reflect skills, experience and specialization of the Perit so engaged and shall relate to the nature and complexity of the work

Suggested fee of 50 euro/hr.

8. Reimbursable expenses and disbursements

The fees set forth in this Tariff shall, in all cases, be exclusive of reimbursable expenses and all other disbursements not already provided for, incurred by the Perit in connection with the Services including:

(a)

Copies of documents, reproductions, binding and similar;

(b)

Fees due to other consultants, if any, sub-contracted by the perit;

(c)

Payments made on behalf of client;

(d)

Expenses for the procurement of furnishings and fittings;

(e)

Expenses incurred in producing progress photographs of the Works;

(f)

Postage and long distance communications;

(g)

Costs in connection with Court duties:

(i) travelling costs to a site inspection €6.99

(ii) typing and printing minutes in the records of a case, per A4 sheet, for the first copy thereof €0.70

(iii) and each additional copy thereof €0.23

(iv)

for the issue of each notice of a sitting or site inspection to lawyers and parties €1.16

9.

Specialist and Supplementary Services

The Perit may offer specialist services or engage sub consultants to complement the core services where required. Fees for such services will generally be calculated separately.

a) Specialist services may include:

Project management Project programming Life cycle cost analysis / special cost estimates Project financing services Urban planning / town planning & design Transport, traffic and parking planning & design Heritage / conservation assessments Geotechnical survey and analysis Defects or other surveys of existing, adjoining, or adjacent structures Integrated sustainable design studies Landscape planning and design Interior design / tenancy fit-out

Selection / design of furniture, fittings and equipment Way-finding / graphics / signage design Acoustic design Electrical / lighting engineering design Communications, audio visual and IT engineering Heating, ventilation and air conditioning engineering Plumbing and drainage engineering Fire engineering Property management / facilities management Post occupancy evaluation Other forms of dispute resolution / expert witness service Increased professional indemnity cover to meet client requirements

b) Sub consultants engaged by the Architect may include:

Land Surveyor Quantity Surveyor Geotechnical Engineer Heating / Ventilation / Airconditioning Engineer Hydraulic (Plumbing & Drainage) Engineer Mechanical transportation Engineer Electrical / Lighting Engineer Communications / IT Engineer Fire Services Engineer

c) Separate consultants engaged separately by the Client may include:

Project Manager Project Valuer Project Programmer Urban Planner Heritage / Conservation Advisor Environmental Impact Analyst Landscape Architect Transport / Traffic Planner Graphics and Signage Designer Acoustics Advisor Specialist Planner (health / education etc) Legal / Financial / Insurance Advisors Facilities Manager Marketing Manager