SECTION 1

CATEGORIES OF SERVICE

1.0 Introduction
1.1 Category 1 - Consultive and Advisory Services
1.2 Category 2 - Pre-Design Services
1.3 Category 3 - Detailed Design Services
1.4 Category 4 - Contract Administration and Engineering Review During Construction
1.5 Category 5 - Resident Engineering During construction
1.6 Category 6 - Post Construction Services

FEE BASIS OPTIONS

2.0 Introduction
2.1 Time Basis
2.2 Fixed Fee Basis
2.3 Combination Time Basis and Fixed Fee Basis

SPECIAL SERVICES AND CONDITIONS

3.0 Introduction
3.1 Extra Work
3.2 Re-Use of Drawings and Specifications
3.3 Delays
3.4 Abandonment of Project
3.5 Alternative Design
3.6 Travel Time
3.7 Agreement

DISBURSEMENTS

4.0 Introduction
4.1 Reimbursable Expenses

4-1
4-1

COSTS OF ENGINEERING

1. Direct Costs
2. Overhead Costs
3. Profit

EXAMPLE HOURLY RATE CALCULATIONS

Based on selected annual salaries and assumed annual working hours and fringe benefits.

CATEGORIES OF SERVICE 3 AND 4

Expressed as percentage of estimated construction cost.

Companies who engage in the practice of engineering and offer services directly to Clients are referred to as Consultants. For the purpose of this publication, a Consultant is an individual proprietor or a company registered by the Association of Professional Engineer, Geologists and Geophysicists of Alberta (APEGGA) authorized to engage in the practice of engineering in the Province of Alberta. As members of the Association, Consultants and their professional employees are under the jurisdiction of The Engineering, Geological and Geophysical Professions Act and Regulations in all matter of technical qualifications, ethics and professional conduct.

This Guideline is applicable only to members of the Association and describes what the Council of the Association considers to be an equitable basis for establishing an appropriate fee for competent service on a specific project. It is intended that it be of assistance to members, as well as to Client representatives who are not members, in their respective fee negotiation activities. The Guideline is based on principles that are applicable to all engineering assignments. Special application of the principles may be required to accommodate the unique needs of complex or major projects.

Fee Guidelines published by the Association are not intended in any way to reflect an agreement or consensus amongst members of the Association that the payment for professional services should be based on a minimum tariff. APEGGA members are expected to undertake only those assignments in which they are competent and are encouraged to negotiate fees that are appropriate to each individual project. The fees negotiated should reflect the level of service which will fully satisfy the requirements of The Engineering, Geological and Geophysical Professions Act.

The Guideline is not a legal document and is not intended to supersede or replace contractual arrangements that are designed to satisfy specific situations. APEGGA will not be responsible for any damages, howsoever caused, resulting from its use or non-use on any assignment or project. Members are advised to seek their own legal counsel as required.

A separate publication titled "A Guide to Selecting a Consultant" is also available at APEGGA offices. It is designed to provide guidance to members of the public in selecting a Consultant, and is a complementary document to this Fee Guideline.