What items should be included in the fees for basic design?
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Dear experts, throughout the entire design process of plant engineering, what are the various components that make up the design costs, and at which stages should these costs be charged? For example: which items should be included in the fees for basic design, and at which stage should the fees for equipment procurement and technical services be charged? I would be extremely grateful if you could provide some guidance! !
For which projects are design fees charged? ----Find a standard design contract template issued by the Ministry of Housing and Urban-Rural Development to see at which stage the fees for equipment procurement and technical services should be charged ----During the EPC phase, some long-cycle critical equipment, such as compressors and reactors, can be prepared in advance during the foundation design stage
This post was last edited by Zhi Zhe Ming on 2016-1-19 at 09:39. Taken from the Construction Project Design Contract (**Standard Text), Article 7: Fees 7.1 The parties agree that the design fee under this contract is _______ ten thousand yuan. The charging basis and calculation method shall be in accordance with **and relevant local regulations; where there are no such regulations, they shall be agreed upon by both parties. 7.2 If the aforementioned fees are estimated design costs, then after the preliminary design is approved, the design costs shall be calculated based on the approved preliminary design estimate. If there is an adjustment to the estimated cost during the project construction phase, the design fee should also be adjusted accordingly. Article 8 Payment Method 8.1 Within three days after the entry into force of this contract, the employer shall pay 20% of the total design fee, amounting to ________ ten thousand yuan, as a deposit (this deposit will be deducted from the design fee at the time of contract settlement). 8.2 Within three days after the designer submits the _______ design documents, the client shall pay 30% of the total design cost, amounting to _______ ten thousand yuan ； Thereafter, the employer shall pay the designer 20% of the total design fee in installments, based on the proportion of the drafting work completed by the designer; the amount is _________ ten thousand yuan. Once the drafting work is completed, the employer shall settle the full design fee with no outstanding balance. 8.3 Both parties entrust their banks to pay and collect relevant fees on their behalf.
Thank you very much. By the way, are the service fees associated with special equipment such as compressors and reactors only those that need to be paid during the preliminary design phase? Are the service fees for purchasing other equipment considered at the time of actual purchase, right?
During the preliminary design phase, some long-cycle critical equipment, such as compressors, reactors, and large pumps, requires funding from the manufacturer before design work can begin. As a result, some clients entrust design institutes to provide technical support, such as preparing technical specifications and request for quotes, as well as participating in technical discussions; these services come at a cost. During the project implementation phase, if an EPC contract is provided, no service fees are incurred. However, if Pm services (such as procurement support, inventory management, and supervision of production deadlines) are provided, a service fee is charged based on the number of man-hours or a percentage of the value of the purchased goods (for example, a certain percentage of the procurement cost).