Making quotes cost

As a result of the discussion, EXSA has compiled a standard client Engagement Letter for its supplier members. The letter covers a proposal fee, design fee, minimum design outputs and design copyrights. While EXSA endorses the use of the engagement letter, suppliers make use of this at their discretion.

EXSA member, Stefan Buss, MD of IDG Jhb, is in favour of the design fee principle as he believes it is a useful tool for sifting through potential clients and eliminating those who are simply 'fishing' for design ideas or using the supplier for an additional quote. It also encourages sales people to sell their company's design capabilities.

To Buss's knowledge, IDG Jhb is the only contractor to have asked potential clients to pay for design work included in proposals. To date, IDG Jhb has included the design fee in seven proposals. Five of the prospective clients were willing to pay the fee and two were not. Buss feels that the clients that rejected the fee were probably not committed to the process.

The situation is not unique to South Africa. When asked about the charging of design fees in the UK, Richard Braddick, MD of RB Design & Display Ltd, based in Beaconsfield, Bucks says: "Generally, design agencies are unable to charge for speculative design pitches. Exceptions will be stands designed by marketing agencies (as ongoing work) and the very large stands which take months to pitch for where a nominal fee per agency is not unheard of.

"Organisations have put forward some good solutions but they rely on everyone agreeing to stick to the plan. Unfortunately, where one company insists on charging for a pitch, there will often be another willing to provide the design work free of charge. This situation is fuelled by the number of players - there may be ten companies pitching for the same project."

As in the UK, the South African initiative needs the support of as many industry members as possible if it is to become an industry norm.