Zachary Klee wrote:
Here in Mississippi law prohibits us from discussing fees until we have been selected for the project. I think the analogy would be, "if you required major surgery, would you choose the surgeon based on qualification or cost?". Personally, I'd have to consider both.
This is a major issue when responding to RFQ's that "illegally" request fee information. If we provide it, we've run afoul of the law and risk censure from the BOA. If we don't, the prospective client, who has no idea this law exists, thinks we're being evasive. This is an especially tricky issue when the prospect is a municipality that should know the rules but doesn't or just ignores them.
Qualifications-based selection is the rule for public work in Washington state, too. For private work, it is whatever the market will bear (in some cases) or "will you go as low as XYZ who is also bidding to get the job?"
For some public projects where the client asks for fee information, we've often asked them if they're familiar with the Law, and occasionally we see an addendum come out that directs all interested parties to omit the fee information from the RFQ response. We have been interviewed for a few of those projects, too, so we know it isn't the kiss of death to ask. To me, the best medium for this question to the owner's representative is an e-mail. Calling on the phone could open a can of worms, sending a letter on letterhead is scary, but an email that just says something like "it looks like you would like fee information at this stage, but the law says we need to wait to talk about that until we are selected", and give them a link to the RCW section. [Actually, the section says they are supposed to pick the most qualified firm, and then talk fees, but phrasing it this way is more gentle than saying "you're breaking the law by the way you ask..."]
Also for public work -- for the State here, but useful in discussions with many other public entities -- there is a set of fee guidelines (percentage of construction based) and a long list of services. While the percentages may seem low, there are many add-ons that make it possible to pay for one's consultants and have a bit left over. Since most of these projects have a budget established ahead of time, it is possible to know the fee that you are having to work towards.
http://www.ofm.wa.gov/budget/instructions/capinst/2009aeguidelines.pdf for the guidelines/description of services
http://www.ofm.wa.gov/budget/instructions/ae/aefees2007.pdf for the percentages
your mileage and fees may vary.
On the AIA-DOJ front, I too am baffled by the dampening effect of the long-ago directive to "not set fees". As others have noted, PSMJ and Zweig-White, and likely others, publish surveys; so, at least you can find out what others in your area may have charged for a project somewhat like yours a few years ago. The "know your costs, have reliable consultants" counsel is the best, but the market may not always agree; there are many owners who still see our services as an annoying requirement. It is nice to not have to work for such grumpy people.
-------------------------------------------
Joel Niemi AIA
DYKEMAN
Everett WA
-------------------------------------------