| Home

Overview


Original Research

ASSESSMENT OF PROFESSIONAL PRICING STRATEGIES IN THE BUILT ENVIRONMENT: CASE STUDY OF SOUTH AFRICA

MOLUSIWA STEPHAN RAMABODU 1, and THOLANG DAVID NENA 2.

Vol 19, No 12 ( 2024 )   |  DOI: 10.5281/zenodo.14561191   |   Author Affiliation: Department of Construction Management and Quantity Surveying, Durban University of Technology, South Africa 1; Department of Construction Management and Quantity Surveying, University of Johannesburg, South Africa 2.   |   Licensing: CC 4.0   |   Pg no: 346-358   |   Published on: 27-12-2024

Abstract

Inequality in professional fees across built environment professions poses a significant challenge within the construction industry. This study employs document analysis, focusing on projects as case studies, to investigate fee structures across various professions, including quantity surveyors, project managers, architects, structural engineers, civil engineers, electrical engineers, mechanical engineers, and occupational health and safety officers. The analysis reveals considerable variability in fee percentages across projects, suggesting that fee determination is influenced by factors such as project complexity, size, risk, location, and market conditions. Despite this variability, certain patterns emerge, such as higher fee percentages for projects with increased complexity or value. Additionally, competitive pricing strategies are observed, with professionals adjusting fee percentages to remain competitive within the market. These findings underscore the importance of tailored fee structures, informed by project-specific requirements and industry standards, to address the issue of inequality in professional fees and ensure fair compensation for built environment professionals.


Keywords

Built Environment, Discounting, Influence of Fees, Professional Service.