QS fees up 5% on last year

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Charge out rates surge by 25% in housing sector as fees rise in Southwest and Scotland

QS fees have gone up 5% in 2006, a new report has found. Compared to 2000, QS are charging 11% more for their services.

The survey by the Fees Bureau said: “This year’s fee survey reveals a continuing rise in the QS Fees Index, rising on the back of higher average fees recorded for new build jobs and for refurbishment work valued at under £1m.”

However, wide differences were found between rates in different sectors and staff levels of seniority.

Fees in the private housing sector have rocketed comparatively, increasing by 25% since 2000. The figures discount inflation.

Disparities in fee increases were also found between staff with different levels of experience. While senior staff are pocketing a growing hourly pay, rates for more junior workers are remaining static.

The Fees Bureau found that the hourly rate charged by sole principals of companies has leapt from £55 to £65 in 2006.

The rates charged by partners and directors in practices with more than one principal were the same average figure – £75 per hour – in 2006 as 2005, but both lower and upper quartiles have increased, the latter from £85 to £100 per hour.

The same trend affected senior surveyors, who have seen no change in average rates charged but a small rise in the upper quartile figure.

The average fees charged by associates, surveyors with under five years experience and junior surveyors were found to have dropped slightly in 2006.

The survey also suggested a surprising regional trend: fees were found to be higher in Scotland and the Southwest than in London. Vince Nacey, director at the Fees Bureau, said it was too early to tell whether this was signficiant. “It could be due to more complex projects being recorded in Scotland and the Southwest in this year’s survey. We’ll have to wait a couple of years before we know whether this is a trend.”

The survey found that QSs were charging higher fees when working on JCT contracts than Design & Build jobs. The Fees Bureau is the publishing arm of research firm Mirza & Nacey. For further information go to www.feesbureau.co.uk