What is the fee for the design of fine chemical projects, as a percentage of the investment?
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What is the fee for the design of fine chemical projects, as a percentage of the investment?
The design cost for standard equipment is generally 7% of the investment, while it is over 10% for advanced equipment.
Previously, there were fixed rates for charging fees for project design; a certain percentage range was determined based on the total investment amount. However, nowadays there are fewer projects and competition among design firms is fierce, so no one charges according to those fixed rates – instead, prices are determined through bidding. When planning a project, we generally charge a design fee of 2% of the project’s investment cost; for smaller projects, the fee percentage is higher, while for larger projects it can be less than 1%.
1% is really too little; there’s no point in it!
If the total investment in the project exceeds 10 billion, calculate by yourself how much the design fee will be
There aren’t that many projects worth over 10 billion; 1% of those worth tens of millions isn’t much either. You should realize that the effort required by design institutes, as well as the responsibilities they have to bear, are no small matter. It seems it can only be done just barely!
I remember that the previous requirement was 3.5%, but in practice the amount required is usually around 2–3%. Since it deals with fine chemicals, the investment won’t be very large.
How can the design cost for a project worth tens of millions be just 1%? Do you think design firms are some kind of cheap service? Hehe, I’m talking about petrochemical plant complexes, which usually start at several hundred million. It’s really difficult for the smaller-scale fine chemical industries to achieve design fees of less than 1%
As far as I know, it should be 3%.
From what I’ve seen, the rate for fine chemicals is generally between 1.5% and 3%.