Posted By MAK
Hi NMC,

Sometimes if there is a framework contract, where there will be several projects, there will be a framework agreement in place that will assign an approximate value for the CDM-C service for each project depending on the construction costs for that project. this means that say the project construction costs would be 100k for arguments sake then the agreement would tell you that for projects ranging in value between 90k and 120k then perhaps the CDM-C service value would be 0.25% or 0.5% of the overall construction budget.

Generally the higher the construction value the lower the percentage, as the scope of the CDM-C service allegedly doesn't increase.
However, in my experience many of the framework agreements still being used were developed for the PS service and either way haven't evolved much in the last so many years so they could be based on a very tight, out-of date scope of service.

Other ways to calculate costs for CDM-C service are to break the CDM-C scope of service down into approximate hours considered for the specific project in mind for the service actions etc, then charge staff rates/overheads etc plus contingency.

Overall, depends on the company's scope of service and the client requirements (for example does he want the CDM-C to undertake site audits, attend every meeting, input to maintenance integration systems etc.

Posted By Merv Newman
N,

sorry for the former slighty frivolous seeming response (though actually real/real life)

your contract with your client should respect/refelect their job specification.

If they are a bit fuzzy in defining the job then you, too, can be a bit fuzzy in defining your commitments.

This sort of thing happens. They do not know what they want, so you do not know what they expect.

We do our best. Which is what qualiifies us as "consultants"

Charge heavy. But then you have to deliver.

If you are asking for £25 then they will only expect one risk assement.Charge them £1000 and they want 18000 qualification (mind you, that wold take at least 10 days)

Have I yet managed to boil your brain ? Does it even start to hurt ?

Merv

Posted By Robert K Lewis
Or alternatively you can define stage payments where each payment is an agreed percentage of the engagement fee.

It really does depend on your relationship with the client and your ability to manage the invoice flow. If you look at legal practice the generality is to agree an overall fee projection and invoice monthly according to the hours input etc during the bill period. This does need good record keeping though.

In Merv's world and mine as an optimum point we prefer payment up front with no pressure to complete to a deadline - but there are not many of these around;-)

In the end it is about managing your cashflow and keeping the bank manager happy.

Bob