Practice Question - Question 57

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Clarice1955

May 31, 2025 20:35

I was working out this question and I do not understand in their calculations #5 they used the architect lump sum fee, (1,080,00.0) instead of the  $702,000.0 fee.

 

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  abruno168 June 02, 2025 16:25

  1,080,000 is the total design fee based on the 6% of max construction cost of 18M. 

  The RFP outlines that 20% of the total design fee (not the fee after CSME's fee is considered) is to be attributed to women/minority owned businesses, that being ABC Architects as the design consultant. 35% of the total design fee is attributed to CSME per the question/information provided. The take home fee for XYZ is based on the total design fee deducted by the engineering and design consultant fees.

  1,080,000 - 378,000 [CSME 35% of total design fee] - 216,000 [ABC 20% of total design fee] = 486,000 XYZ fee

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  Clarice1955 June 02, 2025 17:53

  thanks for the explanation

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