The fee structure for Hewlett Spencer, LLC is completely negotiable, and is included in the Guaranteed Maximum Price.   The fee and savings incentive are negotiated on the front end of the project and given to the Board before the project ever begins.

For example, on a project with a budget of $30 million, Hewlett Spencer would offer a two-tiered fee structure. First, we would request a negotiated fee to be a fixed amount of approximately 2% of the estimated cost of construction. This fee would be negotiated prior to the GMP, and would be paid in part during the construction process.

Second, a savings incentive would be created, which would be a share of the savings under the Guaranteed Maximum Price of 20% to Hewlett Spencer and 80% to the Board of Education. This incentive would be paid at completion of the punch list and receipt of all releases of lien.

Because Hewlett Spencer does its due diligence on the front end of all projects, which includes constructability analysis and quality engineering, we typically prevent the waste of 11.5% - 22% of hard costs of construction before you get the Guaranteed Maximum Price.  And that amount far exceeds the estimated 2% fee for Hewlett Spencer.

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