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Recommended Tariff of Professional Fees
5.0 Fees for Professional Services

FEES FOR STANDARD SERVICES
1. Where the firm is appointed to render a standard service the fee shall be calculated according to clause 10.1
FEE FOR PARTIAL SERVICES
1. Where the firm is appointed to render a partial service only, the fee, subject to clause 5.2.2, shall be calculated according to clause 10.1 adjusted for the work stages executed in accordance with clause 5.3.1, unless otherwise agreed
2. Where the firm is appointed to take over work from another firm previously commissioned for such work at any stage after work stage one has been completed, the resultant fee for the first subsequent work stage shall be increased by 15 per cent, unless otherwise agreed
FEE FOR PROJECTS THAT INCLUDE REPEATED BUILDINGS
1. Where the firm is appointed to render a service for a project consisting of a number of buildings erected under a single contract the fee shall be calculated according to clause 10.1 and adjusted in terms of clause 5.3.1.4 subject to the buildings being:
  1. built on one site or on a series of adjoining or closely related sites for a single client
  2. either wholly apart from each other or linked with screen walls, common walls or other similar means
  3. repeats of one or more prototype designs for units, blocks or elements and built from the repeated use of one or more sets of drawings and related documents with nominal or no modification for each re-use
  4. The fee is to be adjusted according to the following formula:
    
    Fa = Ft - Ft x Vr / Vt / 2 where:
    
    Fa = Fee after adjustment for repeats
    Ft = Fee determined in terms of 10.1 for the total project
    Vr = Value of repeated units in terms of 5.3.1.3 excluding the first unit
    Vt = Value of the total project
2. Where the repeated buildings are erected under separate contracts and the drawings and related documents for a project are re-used for subsequent projects with nominal or no modification:
  1. The fee for modifying drawings and related documents and preparing site and service plans for each subsequent project shall be 15% of the fee based on the cost of each project calculated according to clause 10.1 or, subject to prior agreement, an hourly rate according to clause 10.2
  2. Where the firm is not required to render any professional services in respect of the re-use of drawings and related documents for a subsequent project, the firm shall be paid 7.5% of the fee based on the final cost of the subsequent project, calculated according to clause 10.1 and payable on completion of the works
  3. The fee for inspecting and administering the contract shall be 25% of the fee based on the cost of each project calculated according to clause 10.1

APPORTIONMENT OF THE FEE TO WORK STAGES

The fee applicable to each work stage shall be in accordance with the table below:

Work Stages 1 to 5	Proportion of Fees	Cumulative Total
1	5%	5%
2	15%	20%
3	15%	35%
4	40%	75%
5	25%	100%

Work stage proportions may be re-allocated by agreement

FEE ADJUSTMENT FOR AN EXTENDED CONTRACT PERIOD
1. Where the contract period has been extended the remuneration of the firm shall be adjusted by taking into account the following factors:
  
  Ps = Start contract period ( Site handover to intended practical completion in calendar days )
  Pf = Final contract period ( Site handover to actual practical completion in calendar days )
  Pp = Professional default portion of the extended contract period in working days
  Pv = Variation in adjusted contract period
  Pr = 0.9 ( Reduction factor applied to the ratio of the contract periods )
  Cs = Start contract value ( Awarded total tender amount )
  Cf = Final contract value ( Final account total amount )
  Cr = Contract value ratio
  Fs = Fee applicable to Cs as per fee scale
  Ff = Fee applicable to Cf as per fee scale
  Fa = Adjusted fee
2. The adjusted fee shall be calculated as follows:
  
  Step 1 Contract period variation
  Pv = (Pf - Pp) / Ps x Pr
  - Where Pv < 1 no fee adjustment is made. Ff is applicable
  - Where Pv > 1 proceed to Step 2
  Step 2 Contract value ratio
  Cr = Cf / Cs
  - Proceed to Step 3
  Step 3 Adjusted fee determination
  Fa = Pv / Cr x Ff
  - Where Fa < Ff no fee adjustment is made. Ff is applicable
  - Where Fa > Ff a fee adjustment is made. Fa is applicable
3. Where the fee is adjusted in accordance with 5.5 no time charges in terms of 8.0 shall be applicable
FEES FOR SUPPLEMENTARY AND OTHER SERVICES
1. SUPPLEMENTARY SERVICES
  
  The fee is calculated using hourly rates according to clause 10.2.unless otherwise agreed. Where a time-based fee is selected, the current rates shall apply: Provided that whenever these rates are revised the new rates shall apply to work performed after the date of publication of such a revision
2. ALTERATIONS
  
  The fee for work that includes alterations is based on the fee calculated on the total project cost according to clause 10.1 but increased for that portion of the work comprising alterations by 30 per cent
3. FIRM NOT PRINCIPAL AGENT
  
  Where the client appoints a principal agent for the duration of the project other than the firm and where the firm's administrative duties are thereby substantially reduced, a maximum reduction of 10 per cent in the fees may be applied
4. FIRM'S SITE REPRESENTATIVE
  
  Where an employee of the firm is seconded for extended inspection in terms of clause 4.3.3, the amount of the reimbursement shall be the total cost of employment plus 30 per cent
5. EXTRAORDINARY CONTRACT PROVISIONS INCLUDING MULTIPROCUREMENT
  
  Where services are required due to contract provisions that are not covered by 3.0 and 4.0 remuneration for such services shall be negotiated between the parties
6. INTEREST ON OUTSTANDING ACCOUNTS
  
  Fee accounts are due on presentation and payable within 31 calendar days. Where the firm does not receive payment of the amount due by the due date the client shall be liable for interest calculated at one hundred and forty percent (140%) of the ruling bank rate for the outstanding period
FEES ON TERMINATION, SUSPENSION OR DEFERMENT
1. Should the whole or any part of the project be terminated, suspended or deferred at any work stage, the firm's fee shall be:
  1. for each completed work stage, the fee calculated according to clause 5.4
  2. for each interrupted work stage the fee calculated according to clause 5.4 prorated to the work done
  3. where the termination, suspension or deferment of the project is not directly attributable to the firm a surcharge of 10 per cent of the fee determined in clauses 5.7.1.1 and 5.7.1.2 shall apply
2. Should the project be reinstated or resumed without significant change within one year of the date of deferment, the fee determined in terms of clause 5.7.1, disregarding any surcharge under clause 5.7.1.3, shall be considered partial payment of the fee determined on the cost of the project
3. Should the project be reinstated after a year, the project shall be considered a new commission and fees shall be negotiated
4. Should additional services by the firm be required concerning the resumption of the deferred project, fees shall be charged for such additional services on a time basis determined according to clause 10.2
5. The project or any part thereof shall be considered as having been terminated where:
  1. the client so informs the firm in writing
  2. it is deferred for longer than one year
  3. instructions necessary for the firm to continue work on the project are not received from the client within 3 months after the firm requests such instructions in writing