Practice Exam 2, regarding overbudget case study 2 question

The architect has utilized a top-down budget to determine fees.

Which portion has the architect likely over budgeted in the fee structure?

why is the answer consultant fee?

I’m not sure about the answer, it would be helpful to see the options they give you. But I would think that is the area where the architect has the least control of the fee for the contract. What do you think?

answer as follow:

  • Net service revenue

Incorrect. Per The Architect’s Handbook of Professional Practice, the net service revenue (NSR) is the gross fee minus consultant fees. In this case, the consultant fees are over budgeted, and therefore the NSR is lower than what the number should be.

  • Consultant fees

Correct. The architect has set aside 40% for the consultant fees, which is a bit excessive based on the size of the project and the number of consultants that the owner will retain per the RFP.

  • Contingency amount

Incorrect. The contingency has been calculated as 3% of the architect’s fee…

  • Architect’s fee
    Incorrect. The architect’s fee is based on 7% …

Does this mean 40% is too much for Consultant Fee? Where is this reference to? Is 40% too much for normal practice?