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Fees Example

Let's see how you apply the fixed Fee across a project's phases, managing the project progress and any overruns that occur.

1. Applying the Fixed Fee

1. Begin by entering the project's Fixed Fee in the Fees section of the Projects window.

   Note: You can also enter the fee as a % of the capital cost of the overall project (in which case the initial fee will be calculated).

2. Click Submit. The system now calculates the Initial Fee and the Available Fee.
3. If the project does not have any phases, enter the Allocated Fee.
4. If the project has phases, click the Phases button and enter the Allocated Fee for each phase.

In the Fees section you can now view the following information:

• The initial fee before any additions or deductions occur.
• The updated fee after any additions or deductions occur.
• The available fee.
• The allocated fee (total amount allocated to phases).
• The estimated percentage completion of the project.
• The unallocated fee (the portion not yet allocated to a phase).

2. Updating the Fixed Fee

If the Fixed Fee needs to be changed during the course of the project carry out these steps:

1. In the Fees section of the Projects window, click the Plus button to the right of the Total Variations field (for increases) or the Total Internal Deductions field (for decreases).
2. Click New to set up a new variation/deduction, or click EDIT to change an existing one.
3. Click SUBMIT.

The Available Fee is updated with the changes you have made.

3. Managing the Agreed Fee

In the project's Financial Summary screen you can monitor project progress against the agreed fees for each phase.

In addition to the overall project figures, the Phase Breakdown section (which can be expanded and collapsed) enables you to monitor each phase based on:

• The costs to date.
• Percentage complete.
• Estimated total cost.
• The resulting Surplus/Deficit.
• The hours available to complete the phases.

See also

Fees Section

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