The engineering profession in Malaysia is regulated by the Board of Engineers Malaysia (BEM), which sets out various guidelines to ensure the quality and integrity of engineering practices. One such guideline is the Scale of Fees, which governs the fees charged by Professional Engineers for their services. This blog provides a detailed overview of the Scale of Fees as revised in 1998, its implications for consulting engineers, and how it impacts the engineering profession in Malaysia.
What is the Scale of Fees?
The Scale of Fees is a structured guideline issued by BEM that outlines the fees that consulting engineers can charge for their professional services. This document ensures that fees are standardized across the industry, providing a benchmark for both clients and engineers. The Scale of Fees is based on the complexity and scope of the work involved, ensuring fairness and consistency in how fees are determined.
Objectives of the Scale of Fees
The Scale of Fees aims to achieve several key objectives:
- Standardization: To standardize the fees charged by consulting engineers across Malaysia, ensuring consistency and fairness.
- Professional Integrity: To uphold the professional integrity of engineers by preventing undercutting or overcharging for services.
- Client Protection: To protect clients from being overcharged and to ensure they receive value for the fees paid.
- Industry Benchmark: To provide a clear benchmark for the industry, helping to set expectations for both engineers and clients.
Key Features of the Scale of Fees
The Scale of Fees applies to a range of professional services provided by consulting engineers. These services are categorized into different parts, each outlining specific activities and the corresponding fees.
1. Basic Professional Services
The Scale of Fees covers three main types of professional services provided by consulting engineers:
- Type A Works: Civil and structural engineering works, excluding structural engineering in buildings.
- Type B Works: Structural engineering works in buildings that are more than four storeys high.
- Type C Works: Engineering systems in buildings, including mechanical, electrical, and related services.
For each type of work, the Scale of Fees details the professional services to be provided at different stages of a project, including the preliminary stage, design stage, tender stage, and construction stage.
2. Additional Professional Services
In addition to the basic services, the Scale of Fees also outlines fees for additional professional services that may be requested or required during a project. These include services such as:
- Preparing alternative proposals or reports
- Conducting special surveys or tests
- Providing project management services
- Advising on legal or financial matters related to the project
Calculation of Fees
The Scale of Fees provides two primary methods for calculating fees:
Table 1: Methods of Calculating Fees
| Method | Description |
|---|---|
| Cost-Based Fee | Fees are calculated as a percentage of the total cost of the works. This percentage varies depending on the complexity and type of work. |
| Salary Cost Times Multiplier | Fees are calculated based on the salary cost of the engineers involved, multiplied by a predetermined factor to account for overheads and profit. |
Table of Fees Based on Project Cost
The Scale of Fees also includes a detailed table outlining the specific percentages to be applied based on the total cost of the works. The percentages vary depending on the type of project (Type A, B, or C) and the total project cost.
Table 2: Example of Fee Calculation Based on Project Cost
| Total Cost of Works (RM) | Percentage Fee (Type A) | Percentage Fee (Type B) | Percentage Fee (Type C) |
|---|---|---|---|
| Up to 100,000 | 10.00% | 8.65% | 7.60% |
| 1,000,000 | 6.80% | 6.30% | 5.75% |
| 10,000,000 | 5.00% | 4.65% | 4.25% |
| 100,000,000 | 3.95% | 3.70% | 3.50% |
| 1,000,000,000 & above | 2.54% | 2.28% | 2.15% |
Payment Stages
The fees for professional services are generally paid in stages as the project progresses. The Scale of Fees outlines the proportions of the total fee to be paid at each stage:
Table 3: Payment Stages
| Stage of Service | Percentage of Total Fee (Type A) | Percentage of Total Fee (Type B) | Percentage of Total Fee (Type C) |
|---|---|---|---|
| Preliminary Stage | 20% | 20% | 20% |
| Design Stage | 35% | 35% | 35% |
| Tender Stage | 5% | 5% | 5% |
| Construction Stage | 20% | 20% | 20% |
Additional Payments and Reimbursements
In addition to the basic fees, consulting engineers are entitled to additional payments and reimbursements for specific expenses incurred during the project. These include:
- Use of Special Equipment: Fees for using computers or special equipment for design and analysis.
- Disbursements: Reimbursements for printing, travel, communication, and other out-of-pocket expenses.
- Payment for Design Modifications: Additional fees for any modifications or revisions required after the design stage.
Importance of Adhering to the Scale of Fees
Adhering to the Scale of Fees is crucial for maintaining the professionalism and integrity of the engineering profession. It ensures that engineers are fairly compensated for their work while providing clients with transparent and predictable pricing for engineering services. The Scale of Fees also helps prevent unethical practices such as underbidding, which can compromise the quality of engineering services.
Conclusion: Upholding Professional Standards Through the Scale of Fees
The Scale of Fees set by the Board of Engineers Malaysia is a vital document that ensures fairness and transparency in the engineering profession. By understanding and adhering to these guidelines, consulting engineers can maintain high standards of professional conduct, provide quality services to their clients, and contribute to the overall integrity of the engineering industry in Malaysia.
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