The following percentages will be charged to each capital project according to its project cost:

• 5% for projects <$3m
• 4% for projects >$3m and <$10m
• 3% for projects >$10m and <$50m
• 2% for projects >$50m

If projects are grouped together by sub-activities with different scopes that rollup into a larger umbrella project, each sub-activity should be charged PM fees at the rate appropriate for that sub-activity budget. Example: the CIP for Moosilauke has sub-activities for each bunkhouse; each sub-activity is charged PM fees at the appropriate rate for that sub-activity budget.

Written approval for any variance from fees calculated based on the above must be provided by the VP of Campus Services.

Budget Changes

If a project budget is increased from less than 3 million to greater than 3 million, PM fees should be adjusted so that the total rate is a percent of the final budget per the above rates. This includes projects that are approved for one phase under $3 million and then have a budget increase for a second phase putting the total budget over $3 million.

If project budget is increased due to scope changes, the PM fees and the budget should be adjusted accordingly. If a project spending is over budget due to mismanagement or poor estimating, the PM fees and budget are not increased.