Project Manager Fees

Discussion in 'Development' started by AnneC, 28th Sep, 2018.

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  1. AnneC

    AnneC Well-Known Member

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    We have been given a fee for Project Management of our development. However, have been informed that there will extra costs incurred if there are any variations. Is this the norm?

    Surely, along the way there will be changes or change of mind for items??
     
  2. MattMc

    MattMc Member

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    Hi Anne, this would be largely dependent on the scope of works quoted for. If works were to occur outside the agreed scope of works then variations may apply.
     
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  3. AnneC

    AnneC Well-Known Member

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    Thanks. Will look at the scope of works .
     
  4. JHC

    JHC Member

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    Correct depends on what the agreed scope of works are.

    Variations that do not materially affect the volume of work to be carried out by a PM should not result in extra costs

    Bear in mind that there may be some variations that actually reduce the volume and scope of work to be carried out which should also be adjusted in your favour
     
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  5. Television

    Television Well-Known Member

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    Did they say that there will be extra costs if they're asked to assess the variations, or just variations in general?
    As mentioned above, if the variations don't materially effect the nature of the project (i.e. stays the same length, same level of finishes, same services required by them) then it should really matter much.

    But if you want them to assess the Builder's variations for contractual validity + check the price - that's fair on their behalf I think then.