Episode 26 - Fee Management Part 1

Send us Fan MailThis week we will be talking about Fee Management, this a relatively extensive subject so I will breaking the episode into two parts. Today is Part 1 where I will be talking about what the fee means for the practice, how to calculate the fee and basing the fees on the RIBA Work stages. Next week, Part 2 will be covering how to negotiate the fee, getting paid, what to do in the event of non payment and working at risk - This episode content meets  PC2 - Clients, Users and Delivery of Services and PC4 Practice and Management of the Part 3 Criteria.Resources from today's episode:Good Practice Guide: Fee ManagementGood Practice Guide: Keeping Out Of TroubleGood Practice Guide: Starting a PracticeGood Practice Guide: Painless Financial ManagementArchitects Handbook of Practice ManagementArchitects Guide to Fee Bidding:https://www.perlego.com/book/1605673/architects-guide-to-fee-bidding-pdf?utm_source=google&utm_medium=cpc&campaignid=15781033413&adgroupid=134828831467&gclid=CjwKCAjwpqCZBhAbEiwAa7pXeUvPUaqbEHL07QUjcS3_NaL7emh3w29Eycsgn7ZP5HFoRmB8k_QMwxoCMVIQAvD_BwEFees:https://www.feesbureau.co.uk/Here's the example I ran through in the episode:Say your construction cost is £1m and there are 20 identical units that cost £40,000 each. The basic fee is 6% of the cost of construction of which 15% is for Stage 4 lets say and 20% is for Stage 5 and it has been decided to rebate 75% of the fee for the identical units.The calculation would be (20-1) x 40,000 / 1m x (6% x 1m x 35% x 75%) = 760,000 / 1m (60,000 x 35% x 75%) = 0.76 x 15,750 = £11, 970Thank you for listening! Please join me next week for Part 2 of Fee Management and more Part3 With Me time.If you liked this episode please give it a rating to help reach more fellow Part3er's!Support the show