TRIS Online Record

Printable View

Title	CONSULTANCY FEES: DICHOTOMY BETWEEN A/E'S NEED TO MAXIMIZE PROFIT AND EMPLOYERS' NEED TO MINIMIZE COST
Accession No	00972295
Authors	Ling, FYY
Journal Title	Journal of Professional Issues in Engineering Education and Practice Vol. 130 No. 2
Corp. Authors / Publisher	American Society of Civil Engineers
Publication Date	20040400
Description	p. 120-123; References; Tables(1)
Languages	English
Abstract	This technical note investigates the importance of fees to architects and engineers (A/Es) with respect to the client's need to minimize production costs. Data was collected by in depth interviews with 12 subject-matter experts from the construction industry. The main finding is that, when it comes to selection and engagement of consultant A/Es, the Economic Theory of the Firm regarding the need to minimize production cost and maximize profit is applicable to design-builders and A/Es, respectively. Design/builders do regard low fees as important, because their overall competitiveness is also dependent on how much fees their design consultants are charging them. Client entities offered that it is not very important to select low-fee A/Es. This is due to the need to employ quality consultants, the fact that fee is not a cost significant item as compared with overall development cost, and the need to motivate consultants by paying them well.
TRT Terms	Business practices ; Construction industry ; Consultants ; Contracting ; Cost control ; Fees ; Profitability ; Project management
Subject Areas	H11 ADMINISTRATION; I10 Economics and Administration
Availability	American Society of Civil Engineers Find a library where document is available Order Document: http://worldcat.org/issn/10523928
TRIS Files	HRIS
Database	TRIS Online

TRIS is a bibliographic database funded by sponsors of the Transportation Research Board (TRB), primarily the state departments of transportation and selected federal transportation agencies. TRIS Online is hosted by the National Transportation Library under a cooperative agreement between the Bureau of Transportation Statistics and TRB.