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  • Question

    Can A A/E hire four sub-contracts also other A/E in which they propose a profit of 10% each on the work they will be doing, but can the original A/E prime A/E contractor also charge 10% profit fee on top of the other sub-contractors profit fees? Also what percentage of of the work should the origianl A/E be conducting?


    Answer

    An A/E firm can hire any subcontractors as long as they meet your technical requirements.  They have the right to add profit on top of what they pay.  Keep in mind this is still a negotiable item after determinig if they are the best qualified A/E.  There is no set pecentage on how much the Prime A/E needs to do.

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