Last update: 02/27/2012
Important information about service fees
Service fees have increased effective October 1, 2010. See the announcement for more information.
Service Fees
New Lease (for Offices & Warehouses) Service
All leasing and design services requested for new leases will be funded through a Project-Based Fee. This is based on the square footage of the space requested, at either the hourly reimbursable rate ($117 effective as of October 1, 2010) or the commission rate of 2.5% of the total value of the lease.
Laboratories and schools' fees are negotiated on a case-by-case basis.
The fee schedule is:
Size Project Based Fee 1 - 5,000 square feet Hourly 5,001 - 10,000 square feet At the discretion of the Chief Property Officer, Either an hourly fee or commission at 2.5% for years 1-5; and 1.25% for years 6 and beyond of the total value of the lease. Over 10,000 square feet for 5 years and under Commission at 2.5% of total value of the lease. Over 10,000 square feet for more than 5 years Commission on leases over five years are charged at 2.5% for years 1-5; and 1.25% for years 6 and beyond of the total value of the lease.
Commission on leases over five years are charged at 2.5% for years 1-5; and 1.25% for years 6 and beyond of the total value of the lease.
Billing Procedures
(a) Projects that are charged on an hourly basis will be invoiced
on a monthly basis.
(b) Commission based fees will be invoiced in four (4) phases:
Billing Phase Explanation of phase % to be billed 1 When letter of interest/intent (LOI) is signed or draft lease is approved by agency 10% 2 When lease is executed 40% 3 When walls are covered (drywall installed) or construction is 50% completed (whichever comes first) 30% 4 When agency takes possession of facility/space or Certificate of Occupancy is issued (whichever comes first) 20%
Initial payments will be based on the lease rate identified in the letter of intent. The final payment will be based on the Total Value of the Final Lease Agreement. The “Total Value of the Final Lease Agreement” includes the calculation of the final rental rate, the value of change orders, the value of lessor-offered incentives or allowances and additional tenant improvements, beyond those that are required by the current edition of the Leased Space Requirements. GA will reconcile and adjust fees, as necessary at the time of the final lease agreement to update GA’s compensations. Change orders, and additional tenant improvements, signed by both parties, are in lieu of an amendment to a Lease Agreement.
New Lease Services include, but are not limited to:
- Site/facility search, evaluation of potential sites, preparation of letters of interest/intent and lease terms and conditions negotiation.
- Preparation of lease documents and related correspondence.
- Planning and design assistance, including schedules, development and review of exhibits, plans, and performance specifications and addenda, and oversight of new space build out.
- Review, negotiate and approve construction costs. Construction management, including site inspections, ensuring compliance with lease terms and conditions, communications with Lessor, agency, contractors, and close-out of project.
- A detailed generic or typical
New Lease
Services Task List
is included in our Forms and Publications.
Lease Renewal Services
For lease renewals, the Facilities and Services Allocation that agencies pay quarterly fund related leasing and design services. This allocation is based on a formula related to an agency’s inventory of existing active leases, total square footage and lease value at biennial budget preparation.
Lease Renewal Base Services include, but are not limited to:
- Facility inspection, development of the deferred items list, and determination of upgrades required by RES's Leased Space Requirements (specifications).
- Lease renewal negotiations and document preparation, including related correspondence.
- Monitoring lessor’s compliance for completion of the deferred items list and any upgrade requirements.
- A detailed generic or
typical
New Lease
Services Task List
is included in our Forms and Publications.
Reimbursable Services
All services not listed under either New Lease or Lease Renewal Services are reimbursable services and are invoiced monthly at the rate of $117 (effective October 1, 2010) per hour.
Reimbursable Services include, but are not limited to:
- Alterations to existing leased space requested at renewal and during the lease term.
- Request for assistance during the lease term (e.g., technical assistance, conflict resolution, lease modification, property management, and implementation of the withholding of rent clause).
- Change Orders.
- Acquisition and disposal of property; lease development projects; easements, appraisals, rights-of way, etc.
Cancellations
If an agency decides to cancel or terminate a project, the agency will be charged a Cancellation Fee:
- Projects conducted under a Commission Rate will be charged for the complete billing phase in which the cancellation takes place as well as an additional cancellation fee of five (5) percent of the next Billing Phase as shown in the Billing Procedures.
- Projects conducted under the hourly Rate will be charged for services provided to the cancellation date and/or costs incurred at the current reimbursable hourly rate, as well as a cancellation fee of five (5) percent of the estimated remaining costs.
The cancellation fees are charged because Real Estate Services (RES) is a self-sustaining program within GA and thus is required to ensure that all costs are fully recoverable. Cancellation or termination of a project results in additional administrative costs. In addition, RES incurs “lost opportunities”, in that staff assigned to a project that is cancelled were unable to be assigned to other projects. Thus a loss of potential revenue has occurred. The cancellation fee is approximately equivalent to the administrative cost of closing out a project at our current fully allocated cost rate.
Delegations
Delegation of authority to negotiate and execute agreements to lease and/or rent offices, classrooms, and other spaces are charged a one-time fee of $250 for maintaining, overseeing, and updating the central registry’s database.
Delegations of authority to negotiate and execute agreements to purchase, dispose, transfer etc. and real property are charged a one-time fee of $250 for maintaining, overseeing, and updating the central registry’s database.
Interagency Agreement
It is very important that all parties involved in any project undertaken by GA have a clear understanding of roles and responsibilities and of the processes involved as well as clear expectations of the results. To meet these goals, GA has implemented a process whereby an Interagency Agreement (IAA) will be prepared and executed for each project.
An Interagency Agreement ensures that:
- RES services are provided in a consistent, predictable, and transparent manner.
- The Client Agency has a clear understanding of RES roles and responsibilities as well as its own.
- There are clear expectations as to what services are to be provided, how they will be provided and by when.
- There will be a clear understanding about the fees for RES services and when payment is due.
Please note that work on a project cannot commence until RES is in receipt of the IAA related to that project, signed by the individual authorized to sign such documents by the agency requesting the service.
For further information, call (360) 902-7373, or send e-mail to RESCustomerSupport@ga.wa.gov.
