AIA B101 CONTRACT PDF

Basic services cover the five traditional work phases of schematic design, design development, construction documents, procurement, and construction. Supplemental Services cover the services that are not included within the Basic Services but can be added to the Architects scope of work. As demonstrated in Episode , nobody really knows how much anything should cost. As currently drafted the Client is not presented with an opportunity to compare and contrast three different, but similar, services options. Instead, the Client is only offered one service option Basic Service and then additional services are charged on top of the Basic Service option. This is a very subtle, but significant, difference in the way fees are framed and presented.

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Basic services cover the five traditional work phases of schematic design, design development, construction documents, procurement, and construction. Supplemental Services cover the services that are not included within the Basic Services but can be added to the Architects scope of work. As demonstrated in Episode , nobody really knows how much anything should cost.

As currently drafted the Client is not presented with an opportunity to compare and contrast three different, but similar, services options. Instead, the Client is only offered one service option Basic Service and then additional services are charged on top of the Basic Service option.

This is a very subtle, but significant, difference in the way fees are framed and presented. Unbundling, as the name implies, requires breaking up a service into smaller services.

This strategy is typically a very effective pricing strategy in markets where the Clients are highly motivated by price — by Unbundling the service, service providers have the opportunity to offer the lowest unbundled price possible. They all strive to compete for the budget-conscious customer with their Basic service option economy tickets and then they charge for Supplemental Services on top luggage, food, drinks, insurance, hotels, rental cars, etc.

If you want to avoid competing on price alone then the fee proposal document needs to demonstrate why the design service is unique and the value it provides to the Client. One of the best ways to demonstrate your unique value selling proposition is to adopt a Versioning Pricing Strategy. A version pricing strategy allows service providers the opportunity to offer different versions of a similar service at different price points. One version could still be the Basic Service as stipulated in the AIA agreement while the other versions will include additional benefits such as those described in the Supplemental Services section.

Rather than presenting the different design service options in different paragraphs within the contract, it would be our suggestion to summarize each service option in a table format, or a Fee Matrix see example: How to Benefit from LEED Certification and Decoy Pricing.

By offering Design Service Options and presenting those options in an easy to read fee matrix the Clients focus will shift from the design fee in isolation to the design fee and the design service being offered.

However, if we develop the strategy further and adopt a multi fee pricing strategy like a versioning strategy then we can achieve two goals:. Once Architects understand the many benefits that a multi fee pricing strategy has to offer then the next step is to understand which options to offer, and how to present those options in a clear and concise manner. Let us know what you think:. The following is a list of resources that are available right now to assist you with creating your own multi-fee pricing strategy today:.

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Get answers to your fee proposal questions, and see what your peers are asking. The eGuides provide a detailed summary with additional studies and examples. Skip to content The No. Image by Blue Turtle Consulting. Supplemental Services: Supplemental Services cover the services that are not included within the Basic Services but can be added to the Architects scope of work. Unbundling Pricing Strategy: This is a very subtle, but significant, difference in the way fees are framed and presented.

Image by Jan W. How to avoid competing on price: If you want to avoid competing on price alone then the fee proposal document needs to demonstrate why the design service is unique and the value it provides to the Client.

Image by OpenClipart-Vectors from Pixabay. The following is a list of resources that are available right now to assist you with creating your own multi-fee pricing strategy today: 1. Tags: Clause , Contract. Please Share This Share this content Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window.

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