Advice to MND on Level of Consultancy Fees in the Built Environment Sector
Between the period February 2014 to January 2015, CCS advised the Ministry of National Development (“MND”) regarding industry players’ feedback on declining consultancy fees in the built environment sector. Industry players suggested reinstating fees guidelines for consultancy services to address the issue of declining consultancy fees.
CCS took the view that fees guidelines by industry associations are generally harmful to competition as they are likely to lead to fees clustering around the recommended level, irrespective of the members’ individual business profiles such as costs, service standards and target customers. CCS therefore recommended that consultancy firms in the built environment sector consider differentiating themselves through offering higher quality services in order to improve their business propositions.