architectural design fee

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    Kyle Keene

    I think I ran into a similar problem with the ballast project management exam. I think you are right, the billing rate accounts for profit. So using the direct rate to get the total fee leaves out profit and overhead? Any update?

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    Sijie Dai (Edited )

    By given information, the design fee $312,500 is based on a percentage of the construction budget.

    Then there is this number, $162,500, which includes both consultant fees and “indirect labor expenses, allowance for profit ad other nonreimbursable expenses". That's why billing rate of direct labor is used in the calculation.

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