Project managers beat QSs on fees

Project managers are generally charging higher fees than QSs, a new report has found. In our latest edition we reported that QS fees have gone up 5% since the start of the year. Since 2000 they have increased by 11%, discounting inflation. The research from the Fees Bureau also showed that project management services tend to be better rewarded than both QS and employer’s agent duties.

A QS partner or director charges between £60 and £80 per hour, while a project manager of the same level charges between £60 and £86 an hour. A QS at surveyor level is worth £32-45 per hour, while an equivalent level PM charges £30-55.

The report found that, as with QS fees, PM fees are higher on refurbishment jobs than on new builds. It also highlighted that the gap between refurb and new build fees was greater for employer’s agent work than for project management.

The average fees for project managing a £1m job is 2.6% for new build and 2.8% for refurbishment. At £10m the average fees are 1.7% for both types of work, the report said.

Average fees charged by QSs offering employer’s agent services are lower than for project management. The average fee for employer’s agent duties on a £1m project are 2.2% for new build and 2.6% for refurbishment contracts. This falls for £10m schemes to 1.9% (new) and 2.2% (refurb).

The Fees Bureau is the publishing arm of research firm Mirza & Nacey. For further information go to www.feesbureau.co.uk

More of the survey will be revealed throughout the week here on the website and in the next edition of QS News magazine.