Project Management Fees

A new project management (PM) fee structure has been implemented for FY20. In most cases, the new structure represents an increase to the PM fee, which is typically a percent of the total project budget used to cover the salaries and benefits for Capital Program Management staff. The PM fee does not account for additional technical resources required to deliver capital projects, such as campus planning, engineering, fire and safety, etc.

The complete tiered pricing structure of previous and new rates is detailed in the table below.

Project Pricing Tiers Previous Rate New Rate (FY20)

$0-$149,999

6%

6%

$150,000-$499,999

3.75%

5%

$500,000-$999,999

3.25%

4%

$1,000,000-$4,999,999

2.75%

3%

$5,000,000-$9,999,999

2.25%

2%

$10,000,000-$49,999,999

$250,000 flat rate

0.8%

$50,000,000-$99,999,999

$250,000 flat rate

$650,000 flat rate

$100,000,000 and over

$250,000 flat rate

$700,000 flat rate

Calculating PM Fees

As in recent years, the new fee structure is a calculation that uses tiered pricing. This means that the PM fee should be calculated for each tier, beginning with the $0-$149,999 tier and continuing through the tiers to the total project budget amount, and then added together.

Projects that fall between $50,000,000-$99,999,999 have a fixed PM fee of $650,000. Similarly, projects that are $100,000,000 and over have a fixed fee of $700,000.

PM Fee Value

The total number of staff in Capital Program Management has decreased in recent years in order to create more efficiencies while continuing to deliver quality services that demonstrate sound fiscal stewardship, with 90% of capital program projects delivered on time and 86% under budget in FY19.

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