I honestly don??t care what value a client puts on a survey. They either sign the contract or they don??t.
The one example of value over T&M that I can really think of, where we as surveyors cut our own throats, is where we've done a survey of a property, and now an ALTA or something else on the same property is requested, by the old client, or even a new owner, and we give a lower estimate/fee, because we've already done work on the property - instead of quoting the fee for the entire work product, as if it were a totally new project.
we give a lower estimate/fee, because we've already done work on the property - instead of quoting the fee for the entire work product
It boils down to fairness and reputation.?ÿ If it's a new client with no relation to the old one, and you don't care who they talk to or if you ever hear from them again, then go ahead and bill the market value.?ÿ But in my experience that's not usually the situation.
Last year a commercial real estate broker I know recommended me to the potential corporate buyer of a property.?ÿ I did an ALTA on the property and charged full fare.?ÿ The deal didn't go through, and a month or two later the broker sent another prospective buyer (another corporation) my way for an ALTA update on the same parcel.?ÿ I offered to do the update for a fee that generously covered my time, but was way below the cost of a brand-new ALTA.?ÿ The buyer got what they needed, I was fairly compensated for my time, and the broker knew that I dealt fairly with his client.?ÿ Had I charged the new-ALTA fee for an ALTA update, the broker might think twice before referring to me again.?ÿ The reputational value of charging based on cost rather than market value was worth the difference to me, and I find that's usually the case.