Fee structure
A fixed management fee. Construction at its actual cost.
Management and supervision
Our fee is based on the living square footage of the project. It covers preconstruction planning, estimating, bidding, project management, and construction supervision. The agreement uses an AIA cost-of-the-work-plus-a-fee form.
The fee also covers routine accounting and office support, local day-to-day truck expenses, project reporting, and the preparation of closeout records.
Construction costs
Materials, subcontractors, and other construction costs are billed at the amounts charged to Gillette Construction. Vendor invoices accompany monthly payment applications, along with a budget variance report and updated schedule.
Savings from the construction budget accrue to the owner.
Changes and overhead
No additional management fee is charged on changes to the work. A direct overhead fee of 2% applies to the total cost of the work to cover project-related general liability insurance premiums.
The scope, fee, and billing terms are set out in the project agreement.