How many times have we seen this crucial entries like this left blank which just opens the door for an argument.
Neither the Project Manager or the Contractor are allowed to just add-in whatever fee percentage they like. Instead, with opposing commercial aims, the law would take the view that it would be something like a 'fair and reasonable' amount which is somewhat subjective and will vary between sectors.
For a typical main Contractor in building or civil engineering, it is typically going to be somewhere between 5.5 and 10%. However, in the process sector, main contractors tend to have higher head office overheads and profits as do some smaller specialists particularly if they are niche ... so go figure or just agree beforehand !!!!
Neither the Project Manager or the Contractor are allowed to just add-in whatever fee percentage they like. Instead, with opposing commercial aims, the law would take the view that it would be something like a 'fair and reasonable' amount which is somewhat subjective and will vary between sectors.
For a typical main Contractor in building or civil engineering, it is typically going to be somewhere between 5.5 and 10%. However, in the process sector, main contractors tend to have higher head office overheads and profits as do some smaller specialists particularly if they are niche ... so go figure or just agree beforehand !!!!