The recent decision by Congress to revise fee limitations on all federal design and construction contracts undertaken with the Department of Defense (DOD) has been commended by the American Institute of Architects (AIA) following President Joe Biden’s formal signing of the National Defense Authorization Act (NDAA) for FY2024.
Under the new federal guidelines, fees are now limited to ten percent of the total estimated construction costs for all architect-engineer services for the preparation of designs, plans, drawings, and specifications. The prevailing statutory limitations had formerly been limited to six percent and applied also to any contract modifications (e.g. redesigns). Any other services are not subject to the limit, according to the current letter of the law.
Speaking to the continued need for change, the AIA’s 2024 President Kimberly Dowdell said: “This is a step in the right direction to ensuring that architects are adequately compensated for the specialized skills and training that encompasses their services provided to the federal government.”
"AIA looks forward to working with the Department of Defense as they implement the new law. AIA will continue to work towards a future where fair and reasonable fees are unfettered by fee limitations across all agencies on all federal design and construction projects," an organizational statement continued.
Past AIA Presidents Chu Richter, Emily Grandstaff-Rice, Dan Hart, and other members of the AIA's leadership were also thanked along with fellow professional engineering organizations for their "leadership and diligence in making the raise in the fee cap a reality."
3 Comments
Well this seems like good news!
AIA stock go up
brrrrr
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