Edit Service Fee
Purpose
This option allows fees for the service to be calculated from a construction value and percentage, and the total fee spread over tasks. This process is very common in (and probably unique to) the construction industry.
Additional Information
To edit fees for an individual task, use the Edit Task Fees option instead.
Use this option to define:
▪The total service fee ▪Whether the fee is linked to the project value ▪The non-chargeable expense allowance ▪The default profit percentage required
Operation
The Edit Service Fees option is a straight forward data entry page requiring the following data entry:
Fee Calculation Method
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Choose from a drop down list of:
▪Percentage Fee ▪Manual Entry Percentage Fee calculates the total service fee from a service value and a fee percentage. For example, Service Fee = £1,000,000 x 4% = £400,000
Manual Entry is just a manual entry of the total fee.
Calculated from Scales is a method of interpolating a percentage through a lookup of scale values. This option is not supported any longer but is included in the list to allow you to convert old projects that have been calculated from scales into a Percentage Fee.
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Project Construction Value
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This shows the latest construction value for the project and cannot be changed here. It must be changed on the Project Values page.
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Service Value
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This is the value against which the fees are calculated.
Eg. Fees = Service Value x Percent Fee
In most cases this will be the same as the project value but could be different. To make things easy there is a button which copies the project value into the service value.
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Outsourced Fees
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This is the value of the service fee which has been outsourced to other consultants. This is a read-only figure. Outsourced Fees
If you have projects which are charged on a fixed fee basis, and need to outsource some of your fee to external consultants, then these are called outsourced fees in Timemaster.
Outsourced fees are handled in Timemaster by creating a purchase order for each sub-consultant with the amount of fee being outsourced. Timemaster then deducts the value of the outsourced fee from your predicted income so your reports of predicted income, or profit and loss are based on your net fee income.
In order for Timemaster to accurately predict when the cost of the outsourced fee falls, a set of rules are applied:
▪Each purchase order value is split over tasks using the same percentage proportions as your gross fee ▪The proportions can be changed either using a lump sum value or percentage entry ▪Once allocated to a task, the cost profile of the purchase order tracks the gross fee income schedule. That is, if the gross fee is scheduled on a monthly basis, then the purchase order cost tracks the monthly schedule. If the gross fee is straight-line apportioned, then the purchase order cost tracks the straight line apportionment.
If a different profile is required, then the purchase order can be scheduled on a monthly basis independently.
For information on how to enter outsourced fees, please see the topic Project Purchases and Expenses Overview.
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are entered by creating a purchase order for each consultant.
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Initial Fees
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Shown for information, Internal Fee = Total Service Fee less Outsourced Fee
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Expense Percent
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This is an estimate of non chargeable expenses as a percentage. It is used to estimate the value of non recoverable expenses. Within the profitability reports, any cost to complete calculated from resource plans or unspent targets is increased by this percentage to estimate a total cost to complete.
Additionally, this percentage is applied when deriving a target cost from the task fee less a profit margin.
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Profit Percent
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The required or estimate profit margin.
This is used when calculating a target spend from the fee.
Target = Fee less profit less expense allowance.
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Notes
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Notes relating to the service fee may be recorded here.
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Fee Calculation Method
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Choose from a drop down list of:
• Percentage Fee
Percentage Fee calculates the total service fee from a service value and a fee percentage. For example, Service Fee = £1,000,000 x 4% = £400,000
Manual Entry is just a manual entry of the total fee.
Calculated from Scales is a method of interpolating a percentage through a lookup of scale values. This option is not supported any longer but is included in the list to allow you to convert old projects that have been calculated from scales into a Percentage Fee.
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Auto-calculate fees on change of project value
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If checked then the fees for this service will be re-calculated whenever the project value changes. If this is not checked the fees must be recalculated manually each time the project value changes.
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Which Project Value?
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This is only shown if the above option for auto-calculation is checked. It allows a choice of project values to be used for calculating the service fees.
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Project Construction Value
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This shows the latest construction value for the project and cannot be changed here. It must be changed on the Project Values page.
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Service Value
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This is the value against which the fees are calculated.
Eg. Fees = Service Value x Percent Fee
In most cases this will be the same as the project value but could be different. To make things easy there is a button which copies the project value into the service value.
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Data entry differs depending on whether the Fee Calculation Method is set to Percentage Fee or Manual Entry
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Fee Calculation Method = Percentage Fee
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Percent Fee
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This is relevant only if the Fee Calculation Method (above) is set to Percentage Fee and is used to calculate the fee.
Eg. Fees = Service Value x Percent Fee
If the Fee Calculation Method is manual, this field is not shown.
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Additional Lump Sum
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A lump sum additional to the percentage fee may be added.
Total Fee = (Service Value x Percent Fee ) + Lump Sum
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Fee Calculation Method = Manual Entry
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Total Service Fee
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The total fee is entered as a lump sum value.
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Outsourced Fee
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This is the value of the service fee which has been outsourced to other consultants. This is a read-only figure. Outsourced Fees are entered by creating a purchase order for each consultant.
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Internal Fees
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Shown for information, Internal Fee = Total Service Fee less Outsourced Fee
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Expense Percent
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This is an estimate of non chargeable expenses as a percentage. It is used to estimate the value of non recoverable expenses. Within the profitability reports, any cost to complete calculated from resource plans or unspent targets is increased by this percentage to estimate a total cost to complete.
Additionally, this percentage is applied when deriving a target cost from the task fee less a profit margin.
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Profit Percent
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The required or estimate profit margin.
This is used when calculating a target spend from the fee.
Target = Fee less profit less expense allowance.
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Notes
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Notes relating to the service fee may be recorded here.
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