A firm that specializes in senior housing is contacted by a developer who wants to build 50 townhouses for residents over 55 years old. The developer is asking for a fee proposal to provide the overall preliminary design as well as construction documents for all the units. Project details follow:
The project will be permitted and constructed in five phases.
The project will be built in clusters of four-, five-, and six-townhouse units.
The units will have three-, four-, and five-bedroom options.
Unit distribution will be determined by sales.
The firm wants to make sure that their fees capture the value of their expertise as well as maximize cash flow and profit.
Which fee proposal structure is most appropriate?
a) Lump Sum Fee
b) Hourly Billing
c) Percentage of Construction Cost
d) Unit-Based Fee with Sales Commission