A new commercial development is planned. A design-build approach will be used as the project delivery system.
A joint venture between Oaks Engineering and Eagles Constr. Co. are being used to design and construct the new development. The construction estimate provided by Oaks and Eagles for the new development was $25.5 million.
This estimate was designated the "Target Value" for the project. Determine the Contractor's Fee based upon the following scenarios (assume a 6% fee for the contractor where applicable):
a. Cost + %Fee, with the project 5% over target value;
b. Cost + Fixed Fee, with the project 8% under target value ;
c. Cost + Fixed Fee + Profit Sharing, with the project under by $0.8 million and a 70-30 owner-contractor profit sharing clause;
d. Cost + Sliding Fee, with the project coming in at $26.2 million;