Which statement best reflects the six percent limitation for AE design costs and what is included?

Which statement best reflects the six percent limitation for AE design costs and what is included?

• A. 6% of the estimated construction cost and includes all related costs.
• B. 6% and includes investigative co-pays and admin costs.
• C. 6% and includes only design costs.
• D. 6% and includes design costs aside from investigative co-paying/admin cost.

Answer: (D)

The six percent limit applies to the compensation for architect-engineer design services—the costs tied to the actual design work for the project. It is calculated as a percentage of the estimated construction cost and is meant to cap the design fees, not every preconstruction expense. Costs for site investigations (geotechnical work, surveys, etc.) and administrative charges are not part of the design services themselves, so they are excluded from this six percent cap and billed separately. In other words, the limit covers design costs only and does not include investigative co-pays or admin costs.

The six percent limit applies to the compensation for architect-engineer design services—the costs tied to the actual design work for the project. It is calculated as a percentage of the estimated construction cost and is meant to cap the design fees, not every preconstruction expense. Costs for site investigations (geotechnical work, surveys, etc.) and administrative charges are not part of the design services themselves, so they are excluded from this six percent cap and billed separately. In other words, the limit covers design costs only and does not include investigative co-pays or admin costs.