Pricing for Repeat Use of Tract Home Design

[siteturbo]

Hello:

Most of my residential engineering design work has been for custom homes. I have a developer that would like to start using me for engineering on their tract (semi-custom) home designs. In other words, the house will be designed once, and built multiple (repeated) times.

My question is, since the home will be constructed multiple times, and since the building department needs structural calcs on each home as their being built (for each street address), how do you price the repeat designs and calculations.

Since the design has already been done, what is the typical pricing structure for repeat design and analysis on the same basic house?

Thanks,

H.E.

 

[StruKturdg]

I worked for a company that did all the tract home designs in houston, like David Weekely, DR Horton, etc and they charged like $75 for each reprint, but we didn't have to provide calcs with those

 

[rday]

I used to work for a firm that did alot of that type of work. Each reuse was $150 charge within the same subdivision. Each recieved a "site specific" foundation plan for the permit process. That was in 2000.

 

[dik]

For repeat work that doesn't change (appreciably) I charge 1/2 fee for the second and 1/3 fee for each subsequent application. I also don't reduce my fee predicated on there being a large number of repeats; I only reduce my fee on subsequent buildings as noted above.

Dik

 

[H57]

My experience is similar to dik. When we do a building we charge full price for the first. 1/2 price for the second. And 1/4 price for all after that. If there are changes to the design or as codes change we negotiate that separate.

 

[siteturbo]

Thanks alot folks. That is very helpful in determining our pricing structure.

H.E.

 

[Structures33]

I did this last year for Lennar - I got $2,000 per model for the first set of plans and am supposed to get $200 every time the model is rebuilt. I did not have to provide calcs - this is drawings only. But they did expect 4 different sets for each model - two different elevations and each reversed. Then each of those needed to be produced in pdf, dwg and dwf formats.
It's good in one respect - it's like royalties on a design - but it was a pain to keep track of. They don't have any system to get me my reuse fees so I have to be the one to go figure out when each one is being built. Also, they came back after the fact and wanted to reduce all the footings, rebar and shear walls (high wind and seismic zone). And finally, because of the market, the last set I designed are not going to get built near the volume that they promised - was supposed to be 80 and now they're trying to sell the lots.
I would never do this again... in fact, I don't do residential any more at all.

 

[archeng59]

The liability for the "repeated" structures is the same as the first one. The fees for the "repeated" designs should account for the liability not just the amount of time spent preparing the documents again.

 

[SWComposites]

Ask the developer how much of a discount they will give you if you buy three homes in the development versus one; then give them the same discount on your fee.

 

[dik]

Structures33... I always make sure the plan is for a particular address. I've been burned the same way... only once, though...

Dik

 

[siteturbo]

archeng59,

You are exactly correct. In fact, one thing that you must think about is, if there is a lawsuit for one of the home designs, then there is a possibility for you to be liable for every home in the subdivision.

If you are successful with the design, you are successful multiple times. But, God forbid, if you make an error, then the error is also repeated multiple times.

I have thought to hire an outside firm to do a peer review on the designs to get another set of eyes on the plans to help eliminate errors being duplicated throughout the subdivision.

Just something else to think about.

H.E.

 

[lsmfse]

Our firm has done several tracts, and have incorporated the fee structures mentioned above. Small tracts where plans will be used 2 or 3 times, we use the 100%/50%/25% fee. For larger tracts, our experince has been for a single floor plan, the developer will have 3-4 different elevations(Hip, Gable, etc)These are evaluated on an individual basis, but generally fees are 100%/75%/25%/25% for each elevation + $250-$500 for each reuse thereafter(1 story vs 2 story vs complexity)We also consider the liability consequnces of upscale developments vs low income as stated by archeng. We have also had to use the argument SWComposites mentioned.