Project Management Fees Pay

Question

How do you charge for project management fees on a project? Is there any rule of thumb to be used in charging the fees? Also, share your thoughts and the approach you use in your practice.

Thank you

Answer 1

Project Manager costs are not usually tied to specific work packages but would span the project's lifetime at varying percentages. 

I've seen organizations that have used a flat rate allocation which varies based on the complexity of a project. 

For lower complexity ones, this could be as low as 5%, whereas it could explode for higher complexity projects. 

Alternately, you can look at the life-cycle which the team will follow and allocate a percentage based on the PM's involvement in each phase.