Early stage of an engineering design project
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It’s a positive trend these days for domestic design institutes to evolve into engineering companies. As they apply what they have learned in practice, engineering companies have also become more flexible. I would like to ask: at the initial stage of a project, how do design institutes determine their pricing? Is there a certain price range in the market, or do the design institutes estimate costs based on each specific project? Thank you in advance! :)
Generally speaking, design firms do not charge too much in the initial stage. There are **specific charging standards for this, but most design firms do not adhere strictly to them; they are more focused on securing large design projects, which allows for negotiation. There is only a symbolic fee charged.
Thank you for the reply from huqingyu above. I’m sorry; I didn’t explain myself clearly. The projects I’m referring to are large-scale projects in the field of design. Also, could I ask if such regulations can be found online? Thank you!
Yes, you can search online for the \"Regulations on the Management of Fees for Engineering Investigation and Design\" (** Planning Commission, Ministry of Construction (2002) Document No. 10 regarding fees)
During the quotation stage, domestic design institutes and foreign companies employ different quotation strategies. Domestic design institutes generally charge a percentage of the investment based on the different design phases; for example, the cost for construction drawings of new factories is usually slightly less than 3%. In addition, costs related to custom design work also need to be taken into account. For foreign engineering companies, quotes are generally based on the man-hours required for design.
I am very grateful for the generous help from simon2007 and home.:handshake