PROJECT MANAGEMENT FEE

As of July 1, 2006, the Project Management Fee is assessed according to the following stratified, cumulative percentage rates:

Project Budget	PM Fee Rate
$0 to $499,999	6%* of total project budget
$500,000 to $999,999	6% of first $499,999, plus 5% of remaining budget amount
$1 million to $4,999,999	6% of first $499,999, plus 5% of next $500,000, plus 3% of remaining budget amount
$5 million and above	6% of first $499,999, plus 5% of next $500,000, plus 3% of next $4 million, plus 1% of remaining budget amount

* Regional campus projects up to $499,999 are not charged a Project Management Fee. Projects with budgets above that amount are billed the regular PM Fee rate.

• The PM Fee not only covers the services of the Project Managers themselves, but also clerks that support each project, and other support staff that update and maintain PM processes, standards, schedules, and communications. This staff work throughout the life-cycle of each project, which range in duration from less than 12 months to six years or more from inception to completion.
• Assessed on a periodic basis after the hiring of Architectural/Engineering firm for a project, with 80% collected at the time of bid.
• Payment received via an intramural document processed by Physical Facilities establishing an expense on the construction account for these services.