For people who work in Manhattan, what were your typical fee structure like for structural and MEP engineers? Let's assume the scope is a gut renovation with minor alterations in structure of a 4-5 story townhouse
I ask mainly because I am trying to understand how much architect profit is needed for different types of projects, including how much to allocate to engineers. If the project is decently expensive, let's say 8M construction, and the architect makes 5% profit for a project that takes two years, that is 200k/year gross. After giving fees to engineers, it basically looks like I can't hire anyone from that 5%.
Profit is $ left over after expenses which include consultants and staff.... so, you need much more than 5% of construction value. With this system, you're likely looking at 15%+ just to break even with all the expenses but then again, most offices don't rely on just one project per year to cover the bills.
This is why fees based on cost of construction don't make much sense to me. Figure out how many hours it will take and multiply that by your overhead $ and wage $... then add a profit %. That the pool of cash you have to work with on your end. You consultants will do the same and give you a single lump sum number.
I am assuming the OP really means fee percentage and not really profit percentage. Fee is what % of the construction cost you charge. Profit is your money after everyone else has been paid.
5% fee for the renovation OP is describing is too low.
Feb 8, 24 1:35 pm ·
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NYC / fees for SMEP Engineers
For people who work in Manhattan, what were your typical fee structure like for structural and MEP engineers? Let's assume the scope is a gut renovation with minor alterations in structure of a 4-5 story townhouse
I ask mainly because I am trying to understand how much architect profit is needed for different types of projects, including how much to allocate to engineers. If the project is decently expensive, let's say 8M construction, and the architect makes 5% profit for a project that takes two years, that is 200k/year gross. After giving fees to engineers, it basically looks like I can't hire anyone from that 5%.
Profit is $ left over after expenses which include consultants and staff.... so, you need much more than 5% of construction value. With this system, you're likely looking at 15%+ just to break even with all the expenses but then again, most offices don't rely on just one project per year to cover the bills.
This is why fees based on cost of construction don't make much sense to me. Figure out how many hours it will take and multiply that by your overhead $ and wage $... then add a profit %. That the pool of cash you have to work with on your end. You consultants will do the same and give you a single lump sum number.
I am assuming the OP really means fee percentage and not really profit percentage. Fee is what % of the construction cost you charge. Profit is your money after everyone else has been paid.
5% fee for the renovation OP is describing is too low.
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