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EPM - Assignment 2 Farshad Lalgani 110109718 ENGINEERING - FEES
EPM - Assignment 2 Farshad Lalgani 110109718 ENGINEERING - FEES
Engineering Fees
Submitted By:
Farshad Lalgani
ID No 110109718
Submitted To:
Calculate the total engineering fees including taxes based on the following payment to the
Contractor:
The Contractor will receive a separate payment. Therefore, do not include the Contractor
payment in the engineering fees.
Taxes = 13%
Earth Work
20%
Mechanical Works Electrical Works Earth Work Civil Works Environmental Works
2
Solution:
The total engineering fees including taxes is determined by the below steps:
1. By adding all costs for works, we can get the total construction cost.
Given that,
Mechanical $1,600,000
Electrical $1,800,000
Environmental $1,950,000
Total $8,050,000
2. By multiplying the agreed engineering fees percentage by the total construction cost,
the engineering fees before taxes can be determined.
3. By multiplying the engineering fee (before taxes) by the tax rate, the taxes on the
engineering fees can be calculated.
• Tax= 13%
4. By adding the taxes on the engineering fees to the engineering fee (before taxes), the
Total Engineering Fees (including taxes) can be found.
Therefore, the Total Engineering Fees, including taxes, for the construction of the
manufacturing plant amount is, $805,000+$104,650= $909,650
3
Construction fees Vs Engineering
Consttruction Cost