Board Notices > Guideline Scope of Services and Professional Fees > Scope of Services and Tariff of Fees for Persons Registered in terms of the Act > 4. Guideline Fees > 4.2 Percentage Fees based on Cost of Work Fees for Normal Services

4.2.1

Introduction and worked example fee calculations

In Tables 1 to 8 which follow, the fee guidelines consist of the sum of a primary and secondary fee depending on the cost of the works. The calculation method is explained in a note below each of Tables 1 to 8 and as follows: the appropriate table is selected, then the applicable fee bracket is determined from Columns A and B in the tables. The secondary fee is the percentage (from Column D of the table) of the amount by which the cost of the works exceeds the applicable amount in Column A of the tables. The primary and secondary fees are added together to arrive at the basic fee.

Refer also to the following worked examples:

Example A

Assume a relatively simple rural road project with an estimated cost of the works of R24 million, then the procedure to calculate the fee using the tables would be:

1.	Percentage fee is based on Clause 4.2.2, Table 1

2.	Cost of the works exceeds R21 000 000 (Column A) but does not exceed R52 500 000 (Column B)

3.	Primary fee = R 2 488 500 (Column C)

4.	Secondary fee = (R24 000 000 – R21 000 000) x 9,0% (Column D)= R 270 000

5.	Therefore basic fee = R2 488 500 + R 270 000 = R2 758 500

6.	Multiplied by a complexity factor of 0.85 from Table 2A for rural roads = R 2 344 725 .

7.	The resultant fee may be expressed as a percentage of R 2 344 725 / R24 000 000 = 9.77 %.

Example B

Assume a civil engineering project involving some new roadworks as well as alterations to an existing concrete bridge structure and an estimated cost of the works of R110 million, then the procedure to calculate the fee using the tables would be:

1.	Percentage fee is based on Clause 4.2.1, Table 1

2.	Cost of the works exceeds R105 000 000 (Column A) but does not exceed R630 000 000 (Column B)

3.	Primary fee = R9 523 500 (Column C)

4.	Secondary fee = (R110 000 000 – R105 000 000 ) x 7,0% (Column D) = R350 000

5.	Therefore basic fee = R9 523 500 + R350 000= R9 873 500

If it is further assumed that portion of the total works involves reinforced concrete and structural steel work with a value of R52 400 000 (i.e. 40% of the total works value), then, from Clause 4.2.1, Table 2, the additional design fee on the reinforced concrete and structural steel is calculated as follows:

7.	Additional primary fee (Column C) = R1 092 000

8.	Additional secondary design fee for structural work = (R52 400 000 – R21 000 000) x 3,5% (Column D) = R1 099 000

9.	Therefore additional basic design fee = R1 092 000 + R1 099 000= R 2 191 000

10.	Adjustment factor for alterations to existing structure, from Clause 4.2.2, Table 2A is 1,25, only applicable to the fee for the structural work, i.e. 1,25 x R2 191 000 = R2 738 750 .

11.	The total fee is thus R9 873 500 + R2 738 750 = R12 612 250 which may be expressed as a percentage or as a lump sum or as agreed between the client and the consulting engineer.

Example C

Assume an electrical subcontract on a building project with an estimated cost of the electrical works of R8 million. The consulting engineer is responsible for all financial administration services and the project involves a new building, then the procedure to calculate the fee using the tables would be:

1.	Percentage fee is based on clause 4.2.8, Table 8

2.	Cost of the works exceeds R2 100 000 (Column A) but does not exceed R10 500 000 (Column B)

3.	Primary fee = R399 000 (Column C)

4.	Secondary fee = (R8 000 000 – R 2 100 000) x 15,0% (Column D) = R 885 000

5.	Therefore basic fee = R399 000 + R 885 000 = R 1 284 000 R380 000 + R900 000 = R1 280 000.

6.	The resultant fee may be expressed as a percentage of R 1 284 000 / R8 000 000 = 16,05 %.

Fee negotiations would typically commence using these starting values and judgement regarding project complexity to arrive at a finally agreed percentage fee. The fee amount to be paid will generally be based upon the final cost of works or any other suitably agreed arrangement.

The timing of fee claims should be as described in 4.1.6

4.2.2

Civil and structural engineering services pertaining to engineering projects

The basic fee for normal services in the disciplines of civil and structural engineering, pertaining to Engineering Projects, is determined from Table 1 below. The fee is the sum of the primary fee and the secondary fee applicable to the specific cost of the works in respect of which the services were performed on the project excluding feasibility and similar studies described in clause 3.1, which is normally reimbursed on a time basis in terms of clause 4.4.

Table 1: Civil and Structural Engineering Services pertaining to Engineering Projects

Cost of the Works		Basis of Fee Calculation
For projects up to R1 000 000		Lump Sum or Time Based
Fee Bracket		C Primary Fee	D Secondary Fee (See Note Below Table 1)
Where the cost of the works:
A Exceeds	B But does not exceed
R1 050 000.00	R2 100 000.00	R178 500.00	17.00%
R2 100 000.00	R10 500 000.00	R336 000.00	12.50%
R10 500 000.00	R21 000 000.00	R1 386 000.00	10.50%
R21 000 000.00	R52 500 000.00	R2 488 500.00	9.00%
R52 500 000.00	R105 000 000.00	R5 323 500.00	8.00%
R105 000 000.00	R630 000 000.00	R9 523 500.00	7.00%
>R630 000 000.00		R46 273 500.00	6.00%

NOTE: Determine the applicable fee bracket (Columns A and B), then determine the primary fee in Column C. The secondary fee is the percentage (from Column D) of the amount by which the cost of the works exceeds the applicable amount in Column A. The primary and secondary fees are added together to arrive at the basic fee. Refer to the worked examples in clause 4.2.1.

The following additional fee is typically applicable to the value of the reinforced concrete and structural steel portions of the works, inclusive of the costs of concrete, reinforcing, formwork, structural steel work and any pro-rata preliminary and general amounts. Where structures of identical design are repeated on the same project, the combined cost is normally cumulated for the determination of the cost of the reinforced concrete and structural steel works. In cases where structures require individual design, a separate additional fee is normally calculated for each structure based on the cost of the reinforced concrete and/or structural steel work for that particular structure. The additional fee is the sum of the primary fee and the secondary fee applicable to the specific cost of the works in respect of which the services were rendered on the project as shown below.

Table 2: Additional design fee on reinforced concrete and structural steel pertaining to Engineering Projects

Cost of the Works		Basis of Fee Calculation
For projects up to R1 000 000		Lump Sum or Time Basis
Fee Bracket		C Primary Fee	D Secondary Fee (See Note Below Table 2)
Where the cost of the works:
A Exceeds	B But does not exceed
R1 050 000.00	R2 100 000.00	R84 000.00	8.00%
R2 100 000.00	R10 500 000.00	R157 500.00	5.50%
R10 500 000.00	R21 000 000.00	R619 500.00	4.50%
R21 000 000.00	R52 500 000.00	R1 092 000.00	3.50%
R52 500 000.00	R105 000 000.00	R2 194 500.00	3.00%
>R105 000 000.00		R3 769 500.00	2.50%

To calculate the fee for railway track work in terms of this item, 50 per cent of the cost of the permanent way materials is normally excluded from the cost of the works in view of the limited design input normally required for these elements, but the full cost of ballast and equipment specially designed by the consultant is normally included in the cost of the works.

For normal services relating to a description of the works mentioned in the first column of the following table, the proportion of the basic fee relating to the specific item calculated in terms of clause 4.2.2.1 and 4.2.2.2 is normally multiplied by the category factors mentioned against that description in the second column of the table. In cases more than one of the descriptions below applies, the effective factor will typically be the product of the factors involved. These factors do not apply when fees are a lump sum or on a time basis.

In the case of road works, where the road traverses both rural and urban areas, an adjustment pro-rata to the length of road in rural and urban areas is normally made.

In the case of road rehabilitation, a combination of factors applies, depending on the situation of the road (rural or urban), and the category factor for alterations to existing works.

Table 2A: Typical factor by which basic fee is multiplied

Description of the Works	Typical factor by which basic fee is multiplied
Single Carriageway Rural roads in flat terrain, excluding bridges	0.85
Rural freeways and dual carriageways in flat terrain, excluding bridges	0.95
Single Carriageway Rural roads in mountainous terrain, excluding bridges	1.15
Rural freeways and dual carriageways in mountainous terrain excluding bridges	1.25
Freeways, single carriageways and dual carriageways through existing peri-urban areas, excluding bridges	1.00
Single Carriageways through existing urban areas	1.15
Freeways and dual carriageways through existing urban areas	1.25
Gravel roads: Primary roads, Secondary roads, Informal roads	1.25 to 1.50 1.00 to 1.25 0.75 to 1.00
Road maintenance and rehabilitation projects, excluding bridges	1.15
Road upgrading (pavement and/or alignment) projects excluding bridges	1.25
Water and wastewater treatment works	1.25
Services (excluding roads) for existing informal settlements including roads and to reduced standards or supplies	1.25 to 1.50
Water and sanitation in rural areas	1.35
Alterations to existing works. (Only applicable to the fees on the portion or section of works affected, see also Clause 4.1.5.13).	1.25
Duplication of works. (Only applicable to the design portion of the fees on duplicated works, see also Clause 4.1.5.14)	0.25

4.2.3

Civil engineering services pertaining to building projects

The basic fee for normal services in the discipline of civil engineering pertaining to building projects is determined from Table 3 below. The fee is the sum of the primary fee and the secondary fee applicable to the specific cost of the works in respect of which the services were performed on the project, excluding feasibility and similar studies described in clause 3.1 which is normally reimbursed on a time basis in terms of clause 4.4.

Table 3: Civil engineering services pertaining to building projects

Cost of the Works		Basis of Fee Calculation
For projects up to R1 000 000		Lump Sum or Time Basis
Fee Bracket		C Primary Fee	D Secondary Fee (See Note below Table 3)
Where the cost of the works:
A Exceeds	B But does not exceed
R1 050 000.00	R2 100 000.00	R178 500.00	17.00%
R2 100 000.00	R10 500 000.00	R336 000.00	12.50%
R10 500 000.00	R21 000 000.00	R1 386 000.00	10.50%
R21 000 000.00	R52 500 000.00	R2 488 500.00	9.50%
>R52 500 000.00		R5 481 000.00	8.50%

For normal services relating to a description of the works mentioned in the first column of Table 3A, the proportion of the basic fee relating to the specific item calculated in terms of clause 4.2.3.1 is normally multiplied by the category factor mentioned against that description in the second column of the table. In case more than one of the descriptions below applies, the effective factor will typically be the product of the factors involved. These factors do not apply when fees are a lump sum or on a time basis.

Table 3A: Typical factor by which basic fee is multiplied

Description of the Works	Typical factor by which basic fee is multiplied
Alterations to existing works. (Only applicable to the fees on the portion or section of works affected, see also Clause 4.1.5.13	1.25
Internal water and drainage for buildings upon specific agreement with the client to render such services.	1.25
Mass concrete foundations, brickwork and cladding designed and detailed by the consulting engineer. (Only applicable to the design portion of the fees on such works, see also Clauses 4.1.5.7 to 4.1.5.9	0,33
Duplication of works. (Only applicable to the design portion of the fees on duplicated works, see also Clause 4.1.5.14)	0.25

4.2.4

Structural engineering services pertaining to building projects

The basic fee for normal services in the discipline of structural engineering pertaining to building projects is determined from Table 4 below. The fee is the sum of the primary fee and the secondary fee applicable to the specific cost of the works in respect of which the services were performed on the project excluding feasibility and similar studies described in clause 3.1 which shall be reimbursed on a time basis in terms of clause 4.4.

Table 4: Structural engineering services pertaining to building projects

Cost of the Works		Basis of Fee Calculation
For projects up to R1 000 000		Lump Sum or Time Basis
Fee Bracket		C Primary Fee	D Secondary Fee (See Note below Table 4)
Where the cost of the works:
A Exceeds	B But does not exceed
R1 050 000.00	R2 100 000.00	R178 500.00	17.00%
R2 100 000.00	R10 500 000.00	R336 000.00	12.50%
R10 500 000.00	R21 000 000.00	R1 386 000.00	10.50%
R21 000 000.00	R52 500 000.00	R2 488 500.00	9.50%
>R52 500 000.00		R5 481 000.00	8.50%

For normal services relating to a description of the works mentioned in the first column of Table 4A, the proportion of the basic fee relating to the specific item calculated in terms of clause 4.2.4.1 is normally multiplied by the category factor mentioned against that description in the second column of the table. In case more than one of the descriptions below applies, the effective factor will typically be the product of the factors involved. These factors do not apply when fees are a lump sum or on a time basis.

Table 4A: Typical factor by which basic fee is multiplied

Description of the Works	Typical factor by which basic fee is multiplied
Alterations to existing works. (Only applicable to the fees on the portion or section of works affected, see also Clause 4.1.5.13	1.25
Mass concrete foundations, brickwork and cladding designed and detailed by the consulting engineer. (Only applicable to the design portion of the fees on such works, see also Clauses 4.1.5 7 to 4.1.5.9)	0,33
Duplication of works. (Only applicable to the design portion of the fees on duplicated works, see also Clause 4.1.5.14)	0.25

4.2.5

Mechanical engineering services pertaining to engineering projects

The basic fee for normal services in the discipline of mechanical engineering, pertaining to Engineering Projects, is determined from the table below. The fee is the sum of the primary fee and the secondary fee applicable to the specific cost of the works in respect of which the services were performed on the project excluding feasibility and similar studies described in clause 3.1 which shall be reimbursed on a time basis in terms of clause 4.4.

Table 5: Mechanical Engineering Services pertaining to Engineering Projects

Cost of the Works		Basis of Fee Calculation
For projects up to R1 000 000		Lump Sum or Time Basis
Fee Bracket		C Primary Fee	D Secondary Fee (See Note below Table 5)
Where the cost of the works:
A Exceeds	B But does not exceed
R1 050 000.00	R2 100 000.00	R178 500.00	17.00%
R2 100 000.00	R10 500 000.00	R336 000.00	12.50%
R10 500 000.00	R21 000 000.00	R1 386 000.00	10.50%
R21 000 000.00	R52 500 000.00	R2 488 500.00	9.50%
R52 500 000.00	R105 000 000.00	R5 323 500.00	8.00%
R105 000 000.00	R630 000 000.00	R9 523 500.00	7.00%
> R630 000 000.00		R46 273 500.00	6.50%

For normal services relating to a description of the works mentioned in the first column of Table 5A, the proportion of the basic fee relating to the specific item calculated in terms of clause 4.2.5.1 is normally multiplied by the category factor mentioned against that description in the second column of the table. In case more than one of the descriptions below applies, the effective factor will typically be the product of the factors involved. These factors do not apply when fees are a lump sum or on a time basis.

Table 5A: Typical factor by which basic fee is multiplied

Description of the Works	Typical factor by which basic fee is multiplied
Alterations to existing works. (Only applicable to the fees on the portion or section of works affected, see also Clause 4.1.5.13)	1.25
Water supply and drainage systems and fire water systems.	1.25
Duplication of works. (Only applicable to the design portion of the fees on duplicated works, see also Clause 4.1.5.14)	0.25

4.2.6

Electrical engineering services pertaining to engineering projects

The basic fee for normal services in the discipline of electrical engineering pertaining to engineering projects is determined from Table 6 below. The fee is the sum of the primary fee and the secondary fee applicable to the specific cost of the works in respect of which the services were performed on the project excluding feasibility and similar studies described in clause 3.1 which shall be reimbursed on a time basis in terms of clause 4.4.

Table 6: Electrical engineering services pertaining to engineering projects

Cost of the Works		Basis of Fee Calculation
For projects up to R1 000 000		Lump Sum or Time Basis
Fee Bracket		C Primary Fee	D Secondary Fee (See Note below Table 6)
Where the cost of the works:
A Exceeds	B But does not exceed
R1 050 000.00	R2 100 000.00	R178 500.00	17.00%
R2 100 000.00	R10 500 000.00	R336 000.00	12.50%
R10 500 000.00	R21 000 000.00	R1 386 000.00	10.50%
R21 000 000.00	R52 500 000.00	R2 488 500.00	9.00%
R52 500 000.00	R105 000 000.00	R5 323 500.00	8.00%
R105 000 000.00	R630 000 000.00	R9 523 500.00	7.00%
> R630 000 000.00		R46 273 500.00	6.50%

For normal services relating to a description of the works mentioned in the first column of Table 6A, the proportion of the basic fee relating to the specific item calculated in terms of clause 4.2.6.1 is normally multiplied by the category factor mentioned against that description in the second column of the table. In case more than one of the descriptions below applies, the effective factor will typically be the product of the factors involved. These factors do not apply when fees are a lump sum or on a time basis.

Table 6A: Typical factor by which basic fee is multiplied

Description of the Works	Typical factor by which basic fee is multiplied
Alterations to existing works. (Only applicable to the fees on the portion or section of works affected, see also Clause 4.1.5.13)	1.25
Duplication of works. (Only applicable to the design portion of the fees on duplicated works, see also Clause 4.1.5.14)	0.25

4.2.7

Mechanical engineering pertaining to building projects

The basic fee for normal services in the discipline of mechanical engineering or wet services pertaining to building projects is determined from Table 7 below. The fee is the sum of the primary fee and the secondary fee applicable to the specific cost of the works in respect of which the services were performed on the project excluding feasibility and similar studies described in clause 3.1 which shall be reimbursed on a time basis in terms of clause 4.4.

Table 7: Mechanical engineering services pertaining to building projects

Cost of the Works		Basis of Fee Calculation
For projects up to R1 000 000		Lump Sum or Time Basis
Fee Bracket		C Primary Fee	D Secondary Fee (See Note below Table 7)
Where the cost of the works:
A Exceeds	B But does not exceed
R1 050 000.00	R2 100 000.00	R210 000.00	20.00%
R2 100 000.00	R10 500 000.00	R399 000.00	15.00%
R10 500 000.00	R21 000 000.00	R1 659 000.00	13.00%
R21 000 000.00	R52 500 000.00	R3 024 000.00	11.50%
R52 500 000.00	R105 000 000.00	R6 646 500.00	10.50%
>R105 000 000.00	R630 000 000.00	R12 159 000.00	10.00%

For normal services relating to a description of the works mentioned in the first column of Table 7A, the proportion of the basic fee relating to the specific item calculated in terms of clause 4.2.7.1 is normally multiplied by the category factor mentioned against that description in the second column of the table. In case more than one of the descriptions below applies, the effective factor will typically be the product of the factors involved. These factors do not apply when fees are a lump sum or on a time basis.

Table 7A: Mechanical engineering services pertaining to building projects

Description of the Works	Typical factor by which basic fee is multiplied
Multi-tenant installations	1.25
Alterations to existing works. (Only applicable to the fees on the portion or section of works affected, see also Clause 4.1.5.13)	1.25
Water supply and drainage systems and fire water systems.	1.25
Duplication of works. (Only applicable to the design portion of the fees on duplicated works, see also Clause 4.1.5.14)	0.25
For projects where the cost of the works exceeds R1 000 000 and where all financial administration services are dealt with by the quantity surveyor or other parties. See also Clause 3.2 and Clause 4.1.5.12.	0.85

4.2.8

Electrical engineering services pertaining to building projects

The basic fee for normal services in the discipline of electrical engineering pertaining to building projects is determined from Table 8 below. The fee is the sum of the primary fee and the secondary fee applicable to the specific cost of the works in respect of which the services were performed on the project excluding feasibility and similar studies described in clause 3.1 which shall be reimbursed on a time basis in terms of clause 4.4.

Table 8: Electrical engineering services pertaining to building projects

Cost of the Works		Basis of Fee Calculation
For projects up to R1 000 000		Lump Sum or Time Basis
Fee Bracket		C Primary Fee	D Secondary Fee (See Note below Table 8)
Where the cost of the works:
A Exceeds	B But does not exceed
R1 050 000.00	R2 100 000.00	R210 000.00	20.00%
R2 100 000.00	R10 500 000.00	R399 000.00	15.00%
R10 500 000.00	R21 000 000.00	R1 659 000.00	13.00%
R21 000 000.00	R52 500 000.00	R3 024 000.00	11.50%
R52 500 000.00	R105 000 000.00	R6 646 500.00	10.50%
>R105 000 000.00		R12 159 000.00	10.00%

For normal services relating to a description of the works mentioned in the first column of Table 8A, the proportion of the basic fee relating to the specific item calculated in terms of clause 4.2.8.1 is normally multiplied by the category factor mentioned against that description in the second column of the table. In case more than one of the descriptions below applies, the effective factor will typically be the product of the factors involved. These factors do not apply when fees are a lump sum or on a time basis.

Table 8A: Typical factor by which basic fee is multiplied

Description of the Works	Typical factor by which basic fee is multiplied
Multi-tenant installations	1.25
Alterations to existing works. (Only applicable to the fees on the portion or section of works affected, see also Clause 4.1.5.13)	1.25
Duplication of works. (Only applicable to the design portion of the fees on duplicated works, see also Clause 4.1.5.14)	0.25
For projects where the cost of the works exceeds R1 000 000 and where all financial administration services are dealt with by the quantity surveyor or other parties. See also Clause 3.2 and Clause 4.1.5.12.	0.85

4.2.9

Services provided partially or in stages

Table 9 shows typical percentages that are typically used for proportioning the basic fee for normal services over the various stages of the services. The actual percentage used should be adjusted for individual projects through negotiation and depending on the work involved in each stage, the value that can be added in each stage and any commercial considerations that may be applicable:

Table 9: Typical percentage points for each stage

Description of the Works

Typical percentage

points for each stage

Civil: Engineering Projects:

Inception

Concept and Viability

Design Development

Documentation and Procurement

Contract Administration and Inspection

Close-Out

Structural: Engineering Projects:

Inception

Concept and Viability

Design Development

Documentation and Procurement

Contract Administration and Inspection

Close-Out

Civil: Building Projects:

Inception

Concept and Viability

Design Development

Documentation and Procurement

Contract Administration and Inspection

Close-Out

Structural: Building Projects:

Inception

Concept and Viability

Design Development

Documentation and Procurement

Contract Administration and Inspection

Close-Out

Mechanical and Electrical: Engineering and Building Projects:

Inception

Concept and Viability

Design Development

Document and Procurement

Contract Administration and Inspection

Close-Out

Where not all the stages of the normal services are provided by the consulting engineer, the fee is, subject to clause 4.2 calculated as a percentage of the total fee calculated in terms of this clause, which percentage is the sum of the percentage points appropriate to each stage as set out in the above table against those stages of the services provided by the consulting engineer, typically plus 10 percentage points.

4.2.10

Postponement, cancellation or abandonment

Should instructions have been given by the client to the consulting engineer to proceed with any of the stages of services set out in clause 3 and the whole or part of the works is cancelled or abandoned or postponed for a period of more than six months, the consulting engineer must be remunerated for services performed, plus a surcharge of one tenth of the full fee which would have been payable to the consulting engineer had his or her services been completed in terms of the engagement.

Engineering Profession Act, 2000 (Act No. 46 of 2000)

Board Notices

Guideline Scope of Services and Professional Fees

Scope of Services and Tariff of Fees for Persons Registered in terms of the Act

4. Guideline Fees

4.2 Percentage Fees based on Cost of Work Fees for Normal Services