Consultants’ split higher on government projects

BCIS Review of Consultants’ Fees on Construction Projects

PR089

Central and local governments are spending a greater proportion of their construction project budget directly on consultant fees than other clients according to BCIS’ Review of Consultants’ Fees on Construction Projects published today. 

Consultant fees as a percentage of the construction cost average 11.1 percent on central and local government projects compared with 8.7 percent for private non-housing projects, reflecting the greater responsibility taken by public clients for design development.

Differing procurement routes require differing levels of consultant involvement.  Fees paid on design and build projects average 6.9 percent, while fees on traditional lump sum contracts average10.4 percent. 

Updated for the first time since 2001, the review demonstrates that the percentage of fees spent on construction contractors has changed very little over the past 10 years with clients spending around nine percent of total project costs.  This comes despite changes in procurement routes pushing more design and project management responsibility onto contractors.

 Joe Martin, Executive Director of BCIS, comments:

“Fees are a significant cost on most construction projects. It is therefore important to make a reasonable budget allowance at the earliest stages of a project, and adjusting this allowance as the brief develops. The review identifies the typical fees paid on various types of projects and is a unique source of early cost advice. The level of fees on a particular project will reflect the amount of work commissioned by the client but the review also allows clients to benchmark their overall level of fees.”

Notes for editors:

The review examines the level of total fees paid on a sample of over 4000 projects.

There is no information available on either the fees paid to individual types of consultants or the range of consultants employed. On any project these two factors will determine the level of fees actually paid. However, at the earliest stage of schemes some assumption about the cost of consultants’ fees is required before either of these factors can be determined.

The figures used in the analysis are the final fees paid by the client to all construction consultants expressed as a percentage of the final account paid to the contractor.

Review of Consultants' Fees on Construction Projects is priced £125. To order a copy, order online at www.bcis.co.uk, T +44 (0)20 7695 1500 (quoting item code 17429), or email sales@bcis.co.uk.

About BCIS
BCIS (Building Cost Information Service) publishes information on the capital cost of new and refurbished work collected from Chartered Quantity Surveyors and others working in the building industry.  BCIS is a trading name of RICS and was established in 1962 to exchange detailed building price information.

About RICS
RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 86,000 chartered members (FRICS and MRICS) and 55,000 members in other categories of membership (TechRICS, trainees and students) globally. It represents, regulates and promotes the work of these property professionals throughout 146 countries. RICS is governed by a Royal Charter approved by Parliament which requires it to act in the public interest. It is also a professional regulatory body approved by Government (HM Treasury).

Claire Barratt
Press Officer
RICS Corporate Communications
T: +44 (0)20 7334 3736
E : CBarratt@rics.org
www.rics.org/press