Fee
The establishment and receipt of proper fees for design services is another important consideration in evaluating potential risks for a project. When design professionals do not receive an appropriate fee necessary to provide the professional services agreed to with the client, the temptation may be to minimize the time on certain aspects of the professional services in an attempt to control costs. Inadequate fees for professional services ultimately go against the client’s interest for a successful project.
Inadequate fees for professional services ultimately go against the client’s interest for a successful project. claim against the design professional, establishing the appropriate fee for the services to be provided and evaluating a client’s ability and willingness to pay in a timely manner may help avoid some professional liability claims. its bills and the likelihood that fees might not be collected when due. Because some fee disputes between the design professional and client can result in a client’s “retaliatory”
For this reason, it is important that the design professional agree to fees that are adequate to cover the professional services to be provided. Because most projects change not only during the design phases but also during the construction phase, it is important that the design professional have language in the agreement for professional services that allows for the charging of additional fees for a change in or addition to services. Finally, in addition to evaluating if the fee is adequate for the professional services to be provided, it is equally important that fees are invoiced and collected in a timely fashion. Checking the financial capability of the client and the client’s history in paying other design professionals can give an indication as to how long a client takes to pay
30 • From Risk to Profit - Benchmarking and Claims Studies
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