Much like the Design Process, Fees can vary based on Project Specifics.

The following factors can play a big part in determining the fee structure for any given project:

• The Project Scope: size and complexity of the project.

• The Scope of Services: what level of involvement ORS will have.

• The Project Type: new build, renovation, addition, detached structure.

Total Lump Sum. Sometimes referred to as a Total Fixed Fee.

• With a lump sum fee, the scope of services and a fixed price are agreed upon to perform the work.

• Ideal when the responsibilities of the ORS can be identified in detail up front.

• Well suited for larger projects that will have an extended duration.

Hourly per a rate schedule.

• Hours are billed per a fix hourly rate or a rate table that is based on what specific services.

• Good for small projects or when limited services are requested.

• Good when the scope of services is undetermined or there is uncertainty in the project, either in scope, size, cost, duration, or amount of assistance.

Hourly to a Fixed Monthly Fee based on our involvement.

• This is an appropriate solution that provides an agreed number or hours based on an agreed scope of services.

• The model can be based on a fixed monthly amount or a monthly average that can be adjusted easily if a scope increases or decreases.

• Ideal for owners that want limited assistance

Percentage Based Fee.

• ORS works with your budget, or help you determine one, and agree to a percentage fee on that basis.

• This works well when the budget or scope of services stays constant.

• Well-suite when ORS has a longer involvement with the project.

• Typically used in healthcare, civic, commercial, and other larger projects.

 Fee per Square Foot of Construction Size.

• This works well for both parties that have a well-defined scope.

• It provides for a fixed percentage of the total project cost.

• Well-suited for retail tenant improvements or prototype work.

Project Specific.

• Based on specific phase of the project i.e., conceptual phase, entitlement phase, design phase, bidding and negotiation, or construction administration.

• A Project Specific fee is good to use when you know up front where ORS’s services are needed.

• This model provides flexibility to use ORS at minimal levels in phases where you don’t need us, and conversely to provide more involvement when you do need it.

• This provides you with a known fixed cost and tailored scope of services.

Hybrid.

A hybrid or mixture of several of the above fee structures is our preferred delivery method.  This provides a customized solution for your project.  So, which one is right for you?  There is no right or wrong way to work together.  ORS will work with you to decide which is best for your project, and for you.  Below are a few examples of successful strategies that clients have used.

Example 1: Upfront hourly support that converts to lump sum or construction cost percentages.

A customer was looking at three properties to locate a new production facility. ORS provided hourly support to visit each site, provided a review of each, and what the zoning or entitlement process would require. ORS worked with the owner to select one location. ORS developed a concept plan and budget for owner financing. ORS was able to provide the owner with a fixed fee for the remaining portion of our services. This included assistance with zoning, architect interview and selection, drawing review, builder selection, and general oversight during construction.

Example 2: Fixed fees through design work that moves to an hourly or on call basis during construction.

A developer with their own construction crew needed help during the design process.  The developer did not need support during construction but lacked the knowledge to review the architects work.  Our role was to provide constructability reviews and monitor the budget and architect’s drawings.  ORS agreed on a fixed fee in which our work scope was essentially complete at permitting.  The balance of our scope included hourly and on-call support during construction.

Example 3: Lump sum, percentage of construction budget and square foot-based fees that provide hourly support for items outside of the scope of services.

A retail customer was remodeling seven pharmacies in four different states.  This customer had a new prototype and their architect would make minor changes for each location.  Each site required slight adaptions based on the existing building.  Our fixed scope was essentially the same at each location.  It included reviewing the preliminary and final bid drawings.  Our services during the permitting and construction process were mostly accomplished via email and video conferencing.  However, the owner knew there would be times that they needed ORS to travel, but did know which locations, the frequency, or if overnight stays would be needed.  In this case the hourly rate table worked well knowing there would only be a few on site visits and that most services would be limited and done remotely.

Example 4: Monthly retainers.

ORS had a long term relationship with a client who owns numerous properties and undeveloped land. ORS assisted with tenant improvement work, conceptual plans for land they were looking to acquire, reviewed third-party drawings, and review of zoning and code requirements. ORS agreed to a monthly retainer that was based on an average of twelve hours a week. ORS met twice a month to review our work list. Some weeks had more hours, but the average remained consistent. Our agreement also contained a provision to review the actual hours verses the retainer amount every two months, allowing either party to adjust the plan.