Board Notices > Guideline Scope of Services and Professional Fees > Scope of Services and Tariff of Fees for Persons Registered in terms of the Act > 4. Guideline Fees

The fees for additional services, contemplated in clause 3.3, are agreed to between the client and the consulting engineer as described in clause 4.1 and as set out hereunder.

4.3.1

Basis for the calculation of fees for additional services

Unless otherwise agreed in writing, the fees for additional services contemplated in clauses 3.3.1, 3.3.3 and 3.3.6 are calculated on the basis of time as set out in clause 4.4 and actual costs as set out in 4.5.

4.3.2

Construction monitoring

For the provision of construction monitoring services, as contemplated in clause 3.3.2, the consulting engineer is typically entitled to recover from the client:

1.	For Level 3, full time construction monitoring involving monthly site staff costs, the total annual cost of employment of such staff (as described in clause 4.4.4), divided by 12 and multiplied by one of the following:

(a)	Case 1: Where payment is only made for actual time on site and site allowances are not paid separately: 2.1 times total cost of employment.

(b)	Case 2: Where payment is only made for actual time on site and site allowances are paid separately: 2.0 times total cost of employment.

(c)	Case 3: Where payment is made for leave and non-working days and site allowances are paid separately: 1.8 times total cost of employment.

2.	For Level 2, part time monitoring staff costs, the amount payable to such staff at the hourly rates contemplated in clause 4.4.

3.	For all other expenses and costs incurred as part of construction monitoring services, as set out in clause 4.5.

4.3.3

Lead consulting engineer

For services as lead consulting engineer, as contemplated in clause 3.3.3, the lead consulting engineer is typically entitled to an additional fee of 10 percent (10%) of the total fees payable for the services performed by the joint venture, consortium, or team.

4.3.4

Engineering management services (principal consultant)

For engineering management services or services as the principal consultant, as contemplated in clause 3.3.5, the consulting engineer will typically be remunerated as follows:

The basic fee for services in the discipline of engineering management services, including work pertaining to Building Projects, is determined from the table below. The fee is the sum of the primary fee and the secondary fee applicable to the specific cost of the works in respect of which the services were performed on the project.

Table 10: Engineering Management Services (Principal Consultant)

Cost of the Works		Basis of Fee Calculation
For projects up to R1 000 000		Lump Sum or Time Basis
Fee Bracket		C Primary Fee	D Secondary Fee (See Note below Table 11)
Where the cost of the works:
A Exceeds	B But does not exceed
R1 050 000.00	R2 100 000.00	R52 500.00	5.0%
R2 100 000.00	R10 500 000.00	R99 750.00	3.5%
R10 500 000.00	R21 000 000.00	R393 750.00	3.0%
R21 000 000.00	R52 500 000.00	R708 750.00	2.5%
R52 500 000.00	R105 000 000.00	R1 496 250.00	2.0%
>R105 000 000.00		R2 546 250.00	1.5%

NOTE: Determine the applicable fee bracket (Columns A and B), then determine the primary fee in Column C. The secondary fee is the percentage (from Column D) of the amount by which the cost of the works exceeds the applicable amount in Column A. The primary and secondary fees are added together to arrive at the basic fee.

For normal services relating to a description of the works mentioned in the first column of Table 11A, the proportion of the basic fee relating to the specific item calculated in terms of clause 4.3.3.1 is normally multiplied by the category factor mentioned against that description in the second column of the table. In case more than one of the descriptions below applies, the effective factor will typically be the product of the factors involved. These factors do not apply when fees are a lump sum or on a time basis.

Table 11A: Typical factor by which basic fee is multiplied

Description of the Works	Typical factor by which basic fee is multiplied
Multi-tenant installations.	1.25
Alterations to existing works. (Only applicable to the fees on the portion or section of works affected, see also Clause 4.1.5.13)	1.25

2.	Table 11 is typically used to proportion the basic fee over the various stages of the services:

Table 11: Typical percentage points for each stage

Stage of Services	Typical percentage points for each stage
Inception	5
Preliminary Design: Concept and Viability	20
Design Development	30
Documentation and Procurement	15
Contract Administration and Inspection	25
Close-out	5

4.3.5

Principal agent

For services as principal agent of the client, as contemplated in clause 3.3.7, the consulting engineer is typically entitled to an additional fee calculated at one percentage point (1%) of the total cost of the works comprising the project. The consulting engineer is not entitled to any fees for principal agent if he or she is not explicitly appointed as such.

Engineering Profession Act, 2000 (Act No. 46 of 2000)

Board Notices

Guideline Scope of Services and Professional Fees

Scope of Services and Tariff of Fees for Persons Registered in terms of the Act

4. Guideline Fees

4.3 Fees for Additional Services