Alabama Administrative Code
Title 170 - STATE OF ALABAMA BUILDING COMMISSION
Chapter 170-X-4 - EMPLOYMENT OF DESIGN PROFESSIONALS FOR PROJECTS SUPERVISED AND ADMINISTERED BY THE ALABAMA BUILDING COMMISSION
Section 170-X-4-.07 - Application Of Basic Fee Rate

(1) The Basic Fee percentage rate determined by the project budget shall be applied to the cost of the work. It is not necessary to change the Basic Fee percentage rate because the amount of the subsequent construction contract as awarded or adjusted for minor change orders falls within a bracket of the schedule that is higher or lower than that of the project budget. If major changes in the project and budget occur during the design or construction phases of the project and warrant an increase or decrease in the Basic Fee rate to provide fair and reasonable compensation, the change must be agreed upon in an amendment to the agreement. "Major Changes" include, but are not limited to, changes in project size, complexity, usage, arrangement, schedule, delivery, or phasing of the construction or improvement work and may or may not result in a major, or significant, change in the cost of the work. A Major Change may warrant adjustment of the Basic Fee rate if the change is requested by the awarding authority and the change requires design, administrative, consultant, or other services materially different from those contemplated by the agreement.

(2) The "Schedule of Basic Fee Rates" of rule 170-X-4-.10 contemplates that the work covered by an agreement will be executed either under one lump sum construction contract or under one lump sum construction contract for sitework and a second lump sum construction contract for building construction. Separation of the work into additional construction contracts may warrant negotiation of a higher rate, the basis of which shall be stated in the agreement or in an amendment to the agreement.

(3) The Basic Fee rate shall apply to the combined cost of all buildings or other work covered by an agreement whether the work is executed under one construction contract or one contract for sitework and a second contract for building construction.

(4) If the work covered by an agreement is so divided that more than one building group is involved, the Basic Fee rate of the appropriate building group may be applied to each building. Division of Basic Fee rates must be stipulated in the agreement.

(5) If the scope of an agreement involves substantial duplication of buildings on the same site, the Basic Fee for all services shall be applicable to the cost of the work for the first building. One-half of the Basic Fee for design services shall be applicable to the cost of the work for the second building which is a substantial duplication of the first. The basic fee for design services for other buildings which are substantial duplications of the first and second buildings shall be negotiated and defined in the agreement, but in no case shall exceed the fee for the first duplication. The fees for contract and construction administration services shall be paid in full for duplicated buildings.

(6) If the scope of an agreement involves substantial duplication of buildings on more than one site, the Basic Fee for all services shall be applicable to the cost of the work of site improvements of each site as well as modifications required to adapt the design of the substantially duplicated building to conditions of the second, third, etc., sites. The Basic Fee for all services shall be applicable to the cost of the work for the first building. One-half of the Basic Fee for design services shall be applicable to the cost of the work for the second building which is a substantial duplication of the first. The basic fee for design services for other buildings which are substantial duplications of the first and second buildings shall be negotiated and defined in the agreement, but in no case shall exceed the fee for the first duplication. The fees for contract and construction administration services shall be paid in full for duplicated buildings

Author: Kippy Tate, Director