The influence of fees on the quality of professional services in South Africa

Abstract

The abolishment of the tariff of professional fees in the construction industry is a growing international trend since the late 1980s. In recent years, this has become a topical issue among built environment professionals in South Africa following a ruling by the Competition Commission in 2016 that prohibits professional councils from publishing a tariff of fees. The period following the ruling has coincided with a perceived decline in the quality of professional service outputs, which some have attributed to the lowering of fees resulting from market competition. However, this may not necessarily be true, as other factors also influence quality. This research examined the claims through the lens of professionalism theory, which asserts that professionals have a ‘standard-of-care’ obligation that is not dependent on fees. The examination of data across 15 different professional services disciplines in a new universities project demonstrates that market competition led to fee offers that were lower in comparison with the tariff of fees published by built environment professional councils. However, the professionals delivered a high standard of work, which further challenges the claims that lower fees lead to a decline in the quality of professional service outputs.

Conceptual research methodology to investigate the relationship between fees and quality of professional service outputs

“…However, the studies provided important guidance of how in-depth data collection is an essential component of effective case studies. A recent study by Laryea et al (2021)…”

“…Some studies indicate that professional fees are one of the primary determinants of quality of professional services (Parks and McBride, 1987; DeFraites, 1989; Bubshait et al , 1998; Akampurira and Windapo, 2018; Assaf et al , 2018; and Ali and Au-Yong, 2021). However, other studies (Hoxley, 2000; Andi and Minato, 2004; Phua, 2005; Hoxley, 2007; Wimalasiri et al , 2010; Awolesi and Ayedun, 2012; Lam, 2012; Philips-Ryder et al , 2013; Laryea et al , 2021) reject that notion and assert that other factors apart from fees influence quality.…”

“…looked at how fees influence quality of professional services Laryea et al (2021). used two newly constructed universities in…”

Awareness, Satisfaction and Willingness to Pay Remuneration for Architectural Services among Clients in Nigeria

“…[19] Traditionally, the body of knowledge and norms of professional practice reside within the domain of professional institutions. [20] The Nigerian Institute of Architects (NIA) and Architects' Registration Council of Nigeria (ARCON) constitute institutions traditionally at the helm of affairs of professional architectural practice in Nigeria. The scope of orthogonal or primary architectural services and payment milestones for architects practicing in the NCI approved by ARCON, and the statutory regulatory body for the practice of the profession is classified under three main phases, namely design, production of construction drawings, and tendering/construction services in Stages 1, 2, and 3, respectively.…”

Reforming procurement standards in order to effectively deliver public infrastructure: Rethinking the regulatory environment in post-pandemic South Africa

“…Tenders for professional services were most often awarded at rates lower than those recommended by the relevant professional bodies. (Laryea, Watermeyer & Govender 2020;NUPMT 2018:276) Significantly (and as discussed further in the following section), Wits's procurement policy was almost a carbon copy of the draft National 2011) which informed and was aligned with the provisions of the ISO 10845 series of international standards for construction procurement (Watermeyer & Phillips 2020).…”