The Design Studio’s Fees were favorable to the City of Irvine

The Design Studio’s Fees were favorable to the City of Irvine
Schematic-Design_charts-update

HSNO implies that the Design Studio’s fees were too high for the Schematic Design.
This is completely false. The City engaged two highly respected industry experts to provide independent opinions and validate the Design Studio contract fees. The first expert was the program manager, Bovis Lend Lease. Bovis informed the Great Park Corporation Board that based on industry standards that the cost of design should be 8-12 percent of the project’s total cost. Using Bovis’ industry standard analysis, the range of fees for the Master Plan and Schematic Design for the Great Park would have been somewhere in between approximately $26 million and $39 million. The other expert hired by the City, Dockside Consultants, informed the Great Park Corporation Board and City Council that the Schematic Design contract fees were “favorable” to the City. After HSNO’s allegations were publicized in January 2014, Gafcon asked an internationally known project management and cost management firm, Faithful and Gould, to triple check the reasonableness of the Design Studio’s fees for the Master Plan and Schematic Design. Faithful and Gould provided an analysis that demonstrate the range of fees for Design Studio’s total scope of work should have been between $37 million and $53 million, meaning that the City received an extremely favorable contractor fees for the Design Studio’s work.