Re-use fees

[markac]

I would like some input from engineers out there on how I should put together a price quote for an architect doing multi-unit residential buildings. We've been asked to provide a fee to design one building, but the Owner plans to build approximately 250 identical buildings over several years.
1. What is a reasonable re-use fee?
2. How do you account for the engineer's liability for every building built from these plans?
3. How should these provisions be specified in the contract?
4. How can I safeguard myself against such unlicensed reuse?
5. ?? Other concerns or issues ??

 

[dik]

In our office, the general 'rule of thumb' for straight re-use is that the second one is for 1/2 the original fee and all subsequent ones are for 1/3 of the original fee. If the original requires modification due to soils, wind or seismic, this work is added to the above base fee...

 

[ColCol]

Interesting question. One reason the architect/owner want to make the buildings all the same is to save design costs. If you design it to work once, they ought to be able to build it several times. You're not Bill Gates selling software licences after all.

Of course your design will have a location in the title box and will have notes stating which state and local codes the work complies with. If the owner uses those plans at a different site he does so at his own peril.

I would offer to adopt the design to any additonal site that he wants on a time and materials basis with your standard profitable rates.

 

[RDK]

I have to disagree with you, ColCol.

A design is very similar to a software license. Most designers I know retain copyright to their designs. You can restrict copyright to a single use or you can issue a site license.

To answer markac’s questions:

1) A reasonable re-use fee is whatever you can negotiate with your client. The ½ and 1/3 fee would be a good starting point.
2) The re-use fee would be to cover the liability.
3) If you are just negotiating the initial contract simply state clearly what the fees are for re-use of the designs and that you are retaining copyright of the original design.
4) The safeguards are more difficult. Do not let the originals (electronic or paper copies) our of your office. Sign using a coloured pen. Blue works because it’s difficult to photocopy. A disclaimer above the stamp stating that the original is signed in blue and that only the original is a valid representation of the design can be used. You can include a text box in AutoCAD, shrunk to microscopic size that states your copyright. (Put the same text full size as a separate layer with the statement that turning off this layer and using the drawing is an acceptance of the copyright and an agreement to only use the drawing in accordance with the license granted.) This would only be useful in proving that someone used your electronic copies of your documents without your permission. Keep an eye on the client, is he advertising for bids for similar work? If so then take out a set of plans ( either directly or through a friendly contractor) and compare this to your original work. It really comes down to a matter of trust. If you don’t trust your client not to steal from you then you may want to pass on this commission in the first place.
5) Other concerns Where are all these buildings going to be built? Do you have licenses (both professional and business) in all places? How are you going to inspect your designs? Do local codes and practices make the cookie cutter design approach invalid? Is your firm big enough to cover all this work? (it could be geographically diverse)


Rick Kitson MBA P.Eng

Construction Project Management
From conception to completion

http://www.kitsonengineering.com

 

[ColCol]

Most designers I know (industrial, energy and process industry) don't retain copyright for their designs. In my 18 years at this, I have never (nor has my employer) retained a copyright to a design. There are some exceptions for proprietary process designs, but the ownership is of the process design, not the building it goes in.

You are right that the correct fee is whatever you can negotiate up front, assuming you can negotiate the right to retain copyright of the drawings. This right will cost you some money (reduce your fee) since nothing is free.

Engineering is a big industry; I'm not surprised that our experiences in this area are so different.