You are a Professional Project Manager, and you have been invited to quote on doing a full project management service on a contract that is estimated at having a value of R50,000,000 and R250,000,000.

You are prepared to offer the client a 5% discount on the fee over R100,000,000. Using the VLOOKUP function, you will need to calculate the following:

Contract Value

Fixed Portion Fee

Marginal Rate

On Excess

Marginal Fee

Discount offered

Total Fee

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You are required to draw up a spreadsheet indicating the Project Management Fee Scale, like this. PM Fee Scale Value of Project Exceeds PM Fee Scale Value of Project up to R1,000,000 R1,000,000 R2,000,000 R2,000,000-R4,000,000 But less Than R4,000,000 R8,000,000 R8,000,000 R16,000,000 R16,000,000 R32,000,000 R32,000,000 - R64,000,000 R64,000,000 R128,000,000 R128,000,000 R256,000,000 R256,000,000 R500,000,000 R500,000,000 R1,500,000,000 R1,500,000,000 R3,000,000,000 R3,000,000,000 and over Primary Charge Primary Charge R11,000 R75,000 R136,000 R256,000 R472,000 R876,800 R1,592,000 R2,872,000 R5,368,000 R9,336,000 R16,656,000 R43,156,000 R78,406,000 Fees Marginal rate on the amount in excess of: Marginal Rate 7.4% over R0.00 7.10% over R1,000,000 7.00% over R2,000,000 6.40% over R4,000,000 6.06% over R8,000,000 5.47% over R16,000,000 5.00% over R32,000,000 4.90% over R64,000,000 4.10% over R128,000,000 4.00% over R256,000,000 3.65% over R500,000,000 3.35% over R1,500,000,000 2.85% over R3,000,000,000 You are required to draw up a spreadsheet indicating the Project Management Fee Scale, like this. PM Fee Scale Value of Project Exceeds PM Fee Scale Value of Project up to R1,000,000 R1,000,000 R2,000,000 R2,000,000-R4,000,000 But less Than R4,000,000 R8,000,000 R8,000,000 R16,000,000 R16,000,000 R32,000,000 R32,000,000 - R64,000,000 R64,000,000 R128,000,000 R128,000,000 R256,000,000 R256,000,000 R500,000,000 R500,000,000 R1,500,000,000 R1,500,000,000 R3,000,000,000 R3,000,000,000 and over Primary Charge Primary Charge R11,000 R75,000 R136,000 R256,000 R472,000 R876,800 R1,592,000 R2,872,000 R5,368,000 R9,336,000 R16,656,000 R43,156,000 R78,406,000 Fees Marginal rate on the amount in excess of: Marginal Rate 7.4% over R0.00 7.10% over R1,000,000 7.00% over R2,000,000 6.40% over R4,000,000 6.06% over R8,000,000 5.47% over R16,000,000 5.00% over R32,000,000 4.90% over R64,000,000 4.10% over R128,000,000 4.00% over R256,000,000 3.65% over R500,000,000 3.35% over R1,500,000,000 2.85% over R3,000,000,000

Answer rating: 100% (QA)

Calculation 1 Fixed Portion Fee R11000 Calculation 2 Marginal Rate ... View the full answer