La. Admin. Code tit. 34 § III-109

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-109 - Compensation

A. The fee for basic services to be paid to the designer shall be as follows.

1. The fee for basic services, shall be calculated as the product of the fee percentage, adjusted for inflation, and the Available Funds for Construction (AFC), adjusted for inflation. The fee percentage shall be computed by the formula.

FEE PERCENTAGE = 46.10/ Log (AFC (1975 BCI/Current BCI))

The fee shall be computed by the following formula:

FEE = FEE PERCENTAGE (AFC(1975 BCI/Current BCI)(Current CPI/1975 CPI)

Where "BCI" = Building Cost Index as published by Engineering News Record and "CPI" = Consumer Price Index as published by U.S. Department of Labor, Bureau of Labor Statistics. Since the annual averages computed in December of the BCI and CPI are used, fee calculations are based upon the most current calendar year average of both indices.

a. Should fee modifications occur during the course of the project, the BCI and CPI index factors used to calculate the original fee shall be used.

b. If a project, through no fault of the designer, is inactive for more than 24 months, the current BCI and CPI index factors shall be applied to the projects remaining phases once re-activated, unless the new index factors reduce the fee. In that case, the index factors shall not be revised.

c. Multiple construction contracts. If the owner determines that the best interest of the project is served by bidding and constructing the project under two or more separate construction contracts, the design fee shall be established for each portion by application of the formula and modification factors herein.

d. Fee adjustments for alternates are as follows.

i. If an alternate, pre-approved by the owner, has a cost estimate within the AFC, the designers compensation for said alternate is already included within the designers base fee.

ii. If an alternate, pre-approved by the owner, has a cost estimate in excess of the AFC, the designer shall receive compensation for the value above the AFC for that portion of the phase completed as described in §111.A.1.a (by increasing the AFC for designer fee purposes). If an alternate is based on a substitute system requiring additional design effort, then the total estimated cost shall be used in determining the AFC for design fee purposes for phases completed. If the scope contained in that alternate is not awarded at bid, but later included as a change order and the designer compensated per §111.A.1 a, the compensation shall be adjusted such that the designer shall not be compensated twice for the same work.

iii. If the lowest bona fide base bid, is less than 90 percent of the AFC, refer to §107.E regarding any additional compensation for alternates and change orders.

2. Modification Factors. Prior to selection, the owner shall have the discretion to evaluate the scope, function, complexity, image, and context of the project and apply modification factors listed below to the designers compensation for basic services.

a. Complexity factor shall be based upon the complexity of the project scope as determined by the owner.

i. Simple (0.85 of basic compensation), to be determined by owner-single use projects generally of utilitarian character without complication or detail, such as pre-engineered buildings. Buildings with a high degree of repetition may be included in this classification.

ii. Average (1.00 of basic compensation), to be determined by owner-projects of conventional character requiring normal attention to design and detail, including complete mechanical and electrical systems.

iii. Medium complex (1.1 of basic compensation), to be determined by owner-projects of special character and/or function requiring an above average level of skill in design and containing more than ordinary requirements of scientific, mechanical and electrical equipment.

iv. Complex (1.15 of basic compensation), to be determined by owner-projects of highly specialized design character and function requiring a high degree of design skill and requiring extensive, or special scientific, electronic, mechanical and electrical equipment and design expertise.

b. A renovation factor of up to 1.25 of applied fees, to be established and set by the owner for each individual project, will be multiplied by the fee percentage to arrive at the fee for renovation projects, when determined by the owner to be justified. This fee shall include verifying existing conditions and/or any other additional work incidental to renovation projects. The renovation factor will be set in proportion to additional work anticipated by the owner. The renovation factor will not be applied to re-roofing projects, except in unusual circumstances.

c. An adjustment factor shall be applied, by the owner, based on the design phases required in relation to typical basic services as described in §111 If all design phases are required, the adjustment factor shall be 1.0. If design phases, based on those described in §111, are not required due to previous work, or for other reasons as determined by the owner, eliminated or reduced, then this factor may be reduced below 1.0, prior to designer selection, or negotiated with the designer if an existing contract is amended. If an adjustment factor less than 1.0 is applied, the reduction in total designer fee shall not be applied to each phase, but rather to reflect the phases reduced or eliminated, such that the designer earns the proper fee for work performed at each phase.

3. Change Orders. Preparation of documents required for change orders for any cause shall not be started without owners written approval. Fee adjustments for change orders shall be as follows.

a. Routine change orders, which involve a small amount of effort, will not involve extra compensation. The designer shall notify and obtain the owners prior written approval before preparing a change order for which he/she feels is due extra compensation for the extra effort involved. At the construction close-out phase, all such change orders will be reviewed by the owner and the designer's contract will be amended to reflect extra compensation for the change orders which the owner has determined merit additional fee. The fee will be computed by increasing the AFC (for designer fee purposes) by the amount of change orders that quahfy for additional fee as described above and recalculating the fee.

b. Designer shall prepare change orders caused by errors or omissions of the designer without additional compensation. The designer shall be financially responsible for costs that result from errors. The owner shall participate in the cost of omissions to the extent of the value received by the owner The designer will be notified of any claims of error or omission designations made to a change order prior to execution by the owner

Errors-changes to the work caused by the designer for which the contractor is entitled to payment but for which the owner receives no value. Typically, these involve work that has been constructed and must be demolished and replaced. Therefore, where the owner receives no value, the designer is responsible for 100 percent of the cost.

Omissions-changes to the work caused by the designer for which the contractor is entitled to payment for which the owner receives value. Typically, these involve work that must be added to contract with little or no change to the work that has been constructed.

B. Payment to the designer for additional services shall be made on the basis of a detailed scope of work, a proposal from the designer, and negotiations between the owner and designer All additional services must be pre-approved in writing by the owner prior to start.

Direct Personnel Expense-if referenced as part of the designer's proposal, the normal, straight-time direct salaries of all the designer's persormel engaged in the project (technical but not clerical). This shall also include the direct salaries of designer's consultants involved in the additional services.

C. Reimbursable expenses are in addition to the compensation for basic and additional services and include actual expenditures made by the designer, his/her employees or professional consultants in the interest of the project as directed and authorized by the owner in writing prior to their occurrence.

1. The owner shall reimburse the designer the direct cost for all geotechnical investigations, topographic surveys, and other related information, prior approved by the owner and necessary for the design of the project.

2. The designer shall pay for the cost of printing and distribution of construction documents for the owner's and user agency's use, for regulatory agencies' approvals, and as required for the designer and consultant's own use. The owner will reimburse the designer the direct cost of printing and distribution of all other sets of construction documents, over and above the amount of the deposits on same retained by the designer This will include necessary sets for the contractor to construct the project. If the designer proposes and the owner agrees to an alternative form of document distribution, such as an electronic format, the designer will be reimbursed the direct cost of this method in lieu of the reimbursement described above. The intent remains the same for the designer to bear costs for internal and consultant use.

D. Designer will be paid for prolonged contract administration and observation of construction should the contract time, as may be extended, be exceeded due to no fault of the designer and hquidated damages are required per the contract documents. The amount of such payment shall be computed by dividing 20 percent of the basic total fee by the number of days' construction time, as extended, and multiplying by the number of days of liquidated damages as required by the contract documents.

E. When the designer exceeds the established time schedule, including any extensions of time approved by the owner, unless the extension is due to actions by the owner or user, then the amount of the fee shall be reduced by an amount, as liquidated damages, as stated in the advertisement for designer's selection, for each calendar day past the original or extended date that the designer has not delivered all construction documents to the owner sufficiently complete, coordinated and ready to bid. Completeness of the construction document phase will be determined by the owner as described in §111.A.2

La. Admin. Code tit. 34, § III-109

Promulgated by the Office of the Governor, Division of Administration, Facility Planning and Control, LR 8:474 (September 1982), amended LR 11:850 (September 1985), LR 31:1077 (May 2005), LR 32:2047 (November 2006), Amended by LR 461568 (11/1/2020).

AUTHORITY NOTE: Promulgated in accordance with R.S. 39:1410.