Regarding the design fee standards
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I previously searched the forum for some information related to design fees. There was a fee standard from 2002. But I didn’t quite understand it. Are there any new standards or suggestions regarding one of our pilot plant projects? With a total cost budget of around 18 million, how much should the design fee be? Is it around 3-5%?
The design institute definitely has experience. The thing is, I’m not from a design institute. And those fee rates are a bit hard for me to understand
Pilot plant projects differ significantly from those using conventional, mature processes. Due to the variability of these processes, the miniaturization and lack of standardization of equipment/instruments/pipes/constructions, as well as the high sensitivity and advanced specifications of the instruments, there is little that can be borrowed from previously developed designs. This requires a significant amount of time for design work as well as expertise on the part of the designers; therefore, few design firms are willing to take on such projects at normal design fees, and it’s likely that only 3–5% of them will be willing to do so.