ARCDirectory.co.za

Recommended Tariff of Professional Fees
Example of a 'Repeat Fees' Calculation

The fee is calculated according to the formula:

Fa = ( Ft - Ft x Vr / Vt / 2 )

Where:
Fa : Fee after adjustment for repeats
Ft = Fee in terms of Fee Table for Total Project
Vr = Value of repeated units excluding first unit
Vt = Value of Total Project

Refer to example below:

Type	Value 1st Unit R:	No. of Repeat Units	Vr = T R Units R:	Vt = T All Units
A	925,000	8	7 400 000	8 325 000	57,4 %
B	725,000	4	2 900 000	3 625 000	25,0 %
C	850,000	2	1 700 000	2 550 000	17,6 %
	2,500,000			14 500 000	100,0 %

Total Repeated units			12 000 000	14 500 000	48,8 %
11 Single Units				12 500 000	41,7 %
Infrastructure				3 000 000	10,0 %
Total Project Cost				30,000,000	100,0 %

Fa = Fee after adjustment for repeats
Ft = Fee in terms of Fee Table for Total Project	2 014 370	100,0 %
Vr = Value of repeated units excluding first unit	12 000 000
Vt = Value of Total Project	30 000 000

Fa	:	Ft	-	Ft	x	Vr	/	Vt	/	2
	=	2 014 310	-	( 2 014 370	x	12 000 000	/	30 000 000	/	2 )
	=	2 014 310	-	402 874
											80 %
Fa	=	1 611 496
VAT	=	225 209
Total Fee	=	225 209