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On more unique types of projects, particularly comprehensive studies, a consultant's past <br />experience with similar types of work can be particularly beneficial in providing quality work in a <br />cost-effective manner. In such case, the normal short list may be expanded, or even bypassed, to <br />solicit qualifications from firms who have special expertise in the field of work desired. <br /> <br />Once a short list for a project is determined, actual selection can be based on a number of methods, <br />including:. <br /> <br />b) <br /> <br />Rotate project assignments. This assures that all consultants making the short list will have <br />an opportunity to demonstrate their ability. <br /> <br />Interview and make selection on the 'basis of specific project qualifications. One consultant <br />has experience, which may make them more familiar with a project. Such a consultant may <br />be the logical choice. Compensation might be provided on a cost plus fixed fee basis, or <br />could be negotiated. <br /> <br />c) <br /> <br />Select consultant submitting the lowest lump sum cost. This is the method currently being <br />used. <br /> <br />Methods of Compensation: <br /> <br />Below is discussion of various methods of compensation for engineering services which are in <br />use: <br /> <br />p0rcentage of construction cost: There is an inherent paradox here in that really economical <br />design reduces the fee, while poor design leads to a higher fee. Also, it is difficult to <br />properly relate work complexity to a reasonable percentage fee; obviously, the design effort <br />in designing a street re-surfacing is considerably less than that for new wastewater plants <br />costing the same to build. Manual 45 of the American Society of Civil Engineers states that <br />"the present relationship between engineering costs and construction costs...is no longer <br />valuable as a guide for determining engineering costs for a given project", which is why <br />use of this fee basis has declined. <br /> <br />b) <br /> <br />Agtual cost tflus fixed fee: Documentation and review of the costs can require considerable <br />detail and a3ministmfivc time. Some costs are easier to identify and control than others; for <br />example, telephone and travel may seem easily identifiable and therefore controllable, but <br />there can be disputes about the need and extent of such costs. Personnel cost <br />administration can be difficult because of overhead items and questions on how many <br />people were used and in what classifications. It may be appropriate to establish selected <br />"upset maximum" figures in the agreement to give greater client control. The fixed fee <br />should include the entire profit for the job, but should exclude salaries of f'mn principals <br />which should be paid as personnel costs. This fee basis is frequently used, but it can <br />require closer monitoring than many local agencies find practical. It can be a sound <br />compensation basis for projects ranging from small jobs or minor additions to major <br />contracts, and it is also useful for compensating management consultants. <br /> <br />c) <br /> <br />Salary_ cost times a multinlier plus incidental costs: The multiplier (may range from 2.2 to <br />3.3) is intended to cover ~'sonnel benefits and overheads, general office costs, profit, and <br />general overhead, with travel, long distance phone, printing, and other such incidentals <br />being separately paid. The client should insist on details of the overheads and other items <br />which make up the multiplier and documentation of the types and numbers of personnel <br />which have been charged. Again, this method should include "upset-maximums" and can <br />involve significant administrative and review expense for the agency. This approach is still <br /> <br /> <br />