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I like your idea, tfld, of charging less for the design in order to project manage it.
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I'd be careful doing this guys. What happens when the client decides to walk away from the project? What happens if they decide to hire a different contractor? This stuff happens...
Don't comprise your fee
Also, don't set your PM fee too low. I suggest setting 10% pure profit as the lowest you will go. I think that's a mark up of 11.11%. If you set your fee too low, you won't make jack for the amount of time you actually spend on overseeing the project.