We are sending you a draft proposal of our Design and Build Services for the completion of the new three storey house located at Richardson Street, North Carlton. The housing project with a swimming pool and five bedrooms will be constructed on a 400 square meter site and must be completed by the 31st of January 2009. Design and Build Services Scope of Works Architect’s Fee – 7% of the project cost $84,000 This includes Pre-design services, Design and Development, Documentation and Contract Administration inclusive of GST.
The Architect’s Fee as Project Construction Manager – 1. 5% of the project cost $18,000 Total $102,000 The architectural service to be provided here could be rendered for a project that is based on a guaranteed maximum cost of $1,200,000 inclusive of all fees. However, if savings are earned due to the success of the building operations, the Architect will be given a bonus of 15% of the savings aside from the 1. 5% fee on construction services.
Reimbursable fees include fees for required consultants, taxes and fees paid to authorities, and charges for requested additional presentation materials and as outlined in the attached Client and Architect Agreement. Payment Terms The project is needed to be completed on a specified date. For this reason, the remuneration for the Architects services on Design and Development Phase should be provided as follows: 15% upon the approval of this letter of proposal, 35% upon approval of the schematic design, and 35% upon submission of the final design for construction.
The remaining 15 percent will be billed periodically during construction phase including the services rendered on construction management. Nominated Builder Since we will be working very closely with your cousin’s builder’s outfit, we will recommend that during the process of awarding the tender to your nominated builder they should submit a tender to our office to review whether the project can be undertaken within the budget. For this reason, we also suggest that we get another tender from other qualified builders for comparison in order to make alternatives or to choose the best options.
Commencement of Services We propose to begin immediately as soon as we have signed a Client and Architect Agreement of which describes the terms and condition of the engagement. And in order to move forward, we request that you send us a copy of the Certificate of Title so we can begin the Site Analysis. We look forward to hear from you soon and discuss or clarify any issues detailed above. Kind regards, Name of Principal or Associate KAOS ARCHITECTS Attached (RAIA Client and Architect Standard Agreement on Design Development Phase and Construction Management)