Commercial Pricing Standard

This publication establishes the principles governing the pricing of Professional Engagements undertaken by the Christine Po Professional Practice.

Its purpose is to ensure professional fees are determined consistently, transparently and in a manner that reflects the value, responsibility and professional judgement provided through each engagement.

This publication defines the pricing framework applicable to Professional Engagements and supports the preparation of proposals, commercial arrangements and project- specific fee schedules.

The objective of this publication is to promote fair, sustainable and commercially responsible pricing while preserving the independence and integrity of the Professional Practice.

Professional fees represent the value of professional knowledge, experience, judgement, responsibility and accountability applied throughout a Professional Engagement.

The Professional Practice does not price engagements solely on the time required to perform a task, but on the professional outcome delivered and the responsibility assumed in achieving that outcome.

Commercial pricing shall support:

• professional independence;
• technical integrity;
• sustainable professional practice;
• continual investment in knowledge, systems and digital infrastructure;
• consistent delivery of high-quality professional services.

Professional fees shall reflect, where applicable:

• the complexity of the engagement;
• the level of professional judgement required;
• the risks associated with the engagement;
• the degree of responsibility accepted;
• the specialist knowledge and experience applied;
• the quality and completeness of the required deliverables;
• the value provided to the engaging party;
• the ongoing development and maintenance of the Professional Standards and supporting digital infrastructure.

Professional fees shall never be reduced where doing so would compromise the quality, independence or integrity of the Professional Engagement.

The Professional Practice shall not alter professional conclusions, recommendations or opinions in response to commercial pressure, fee negotiations or contractual considerations.

Commercial pricing shall support the long-term sustainability of the Professional Practice while ensuring that Professional Engagements continue to deliver objective, evidence-based and professionally defensible outcomes.

Professional fees shall be determined in accordance with the following principles.

The Professional Practice shall adopt the pricing methodology most appropriate to the nature, complexity and commercial objectives of the Professional Engagement.

The selected pricing methodology shall promote transparency, fairness and commercial certainty while remaining consistent with the principles established by this publication.

A Professional Engagement may utilise one or more pricing methodologies where appropriate.

Approved pricing methodologies include:

• Fixed Fee;
• Schedule of Rates;
• Hourly Rate;
• Daily Rate;
• Percentage Fee;
• Retainer;
• Subscription;
• Cost Reimbursement;
• Hybrid Pricing Arrangement;
• Project-Specific Commercial Arrangement.

The selection of a pricing methodology shall take into consideration:

• the Professional Engagement type;
• the maturity of the project scope;
• the availability of project information;
• the level of commercial risk;
• the likelihood of scope variation;
• the duration of the engagement;
• the desired level of commercial certainty.

The selected pricing methodology shall be identified within the proposal together with any assumptions necessary for its application.

The adoption of a particular pricing methodology shall not alter the Professional Standards applicable to the Professional Engagement nor diminish the obligations of the Professional Practice under those standards.

Professional fees shall be determined by reference to the total Professional Engagement rather than individual activities wherever reasonably practicable.

A Professional Fee may comprise one or more commercial components, including:

• professional services;
• project planning and administration;
• compliance management;
• compliance verification;
• technical reporting;
• quality assurance and documentation;
• digital compliance services;
• travel and accommodation;
• specialist equipment;
• reimbursable expenses;
• statutory charges;
• approved subcontractor services.

The composition of a Professional Fee shall reflect the nature of the engagement and the value of the professional outcome being delivered.

Professional fees shall incorporate, where applicable:

• professional knowledge and experience;
• technical judgement;
• commercial risk;
• professional responsibility;
• information management;
• document control;
• digital infrastructure;
• business overheads;
• continual professional development;
• research and development;
• maintenance of the Professional Standards.

Where a Schedule of Rates is adopted, individual rates shall be developed in accordance with the pricing principles established by this publication.

The inclusion or exclusion of particular commercial components shall be clearly identified within the proposal or applicable commercial documentation.

No commercial component shall be assumed unless expressly included within the Professional Engagement.

Professional fees are based upon the agreed scope of the Professional Engagement.

Where the scope of an engagement changes, the Professional Practice shall assess whether the change constitutes a variation in accordance with CPS-004 – Professional Engagement Standard.

Additional professional services shall not be undertaken without appropriate commercial consideration unless otherwise agreed in writing.

Variations may result in adjustments to:

• professional fees;
• programme;
• deliverables;
• resource allocation;
• reimbursable expenses; or
• the applicable pricing methodology.

The valuation of a variation shall be determined having regard to:

• the nature and complexity of the additional services;
• the level of professional judgement required;
• the impact on the existing engagement;
• additional commercial risk;
• additional deliverables;
• the applicable pricing methodology.

Where the scope of additional services cannot reasonably be valued using the existing pricing methodology, the Professional Practice may adopt an alternative methodology appropriate to the varied scope.

Variations shall be documented and agreed before the additional services are undertaken wherever reasonably practicable.

Where immediate professional action is reasonably necessary to protect life, property or the integrity of the Professional Engagement, the Professional Practice may undertake the minimum additional services necessary before commercial agreement is finalised, provided the engaging party is notified as soon as reasonably practicable.

Reimbursable Expenses are costs reasonably incurred by the Professional Practice in the delivery of a Professional Engagement that are separate from Professional Fees.

Where applicable, Reimbursable Expenses may include:

• travel;
• accommodation;
• parking and tolls;
• freight and courier services;
• specialist equipment hire;
• statutory fees;
• third-party testing;
• specialist consultants;
• consumable materials;
• other project-specific expenses approved by the engaging party.

Unless otherwise stated within the proposal, Reimbursable Expenses shall be charged in addition to Professional Fees.

Where reasonably practicable, significant Reimbursable Expenses shall be identified within the proposal or approved by the engaging party before they are incurred.

The Professional Practice may require reimbursement of expenses incurred on behalf of the engaging party prior to the issue of final deliverables where those expenses are substantial or project-specific.

Routine business overheads, including ordinary office expenses, software subscriptions, insurance, business administration and the ongoing operation of the Professional Practice, shall not be treated as Reimbursable Expenses unless expressly identified within the proposal.

The Professional Practice shall maintain appropriate records supporting Reimbursable Expenses where reimbursement is sought.

Commercial decisions shall support the Professional Standards and shall not compromise the independence, integrity or quality of the Professional Engagement.

The Professional Practice shall ensure that commercial arrangements remain consistent with:

• CPS-001 – Commercial Framework;
• the accepted proposal;
• the applicable Professional Standards;
• these Commercial Pricing Standards.

Commercial negotiations shall not influence:

• professional judgement;
• technical conclusions;
• compliance assessments;
• compliance verification outcomes;
• documented evidence;
• professional recommendations.

Commercial discounts, concessions or alternative pricing arrangements may be offered where appropriate, provided they:

• do not compromise the Professional Standards;
• remain commercially sustainable;
• are authorised by the Professional Practice;
• are appropriately documented.

Where pricing is based upon a Schedule of Rates, percentage fee or other valuation methodology, the methodology shall remain consistent throughout the Professional Engagement unless amended through an approved variation.

The Professional Practice reserves the right to review and revise its pricing methodologies, schedules of rates and commercial models from time to time.

Such revisions shall apply prospectively and shall not affect Professional Engagements already accepted unless otherwise agreed by the parties.

Commercial records shall be maintained in sufficient detail to support transparency, auditability and the consistent application of this publication.

This Commercial Pricing Standard shall be subject to periodic review to ensure that it remains consistent with the objectives of the Professional Practice and the governing Professional Standards.

The Professional Practice may review this publication in response to:

• changes in legislation;
• changes in applicable standards;
• changes in market conditions;
• changes in business strategy;
• development of new Professional Engagements;
• lessons learned through completed engagements;
• development of Firecode or supporting digital systems;
• other circumstances affecting the commercial operation of the Professional Practice.

Revisions to this publication shall be undertaken in accordance with the document governance requirements established by CPS-001 – Commercial Framework.

Approved revisions shall apply prospectively and shall not affect existing Professional Engagements unless expressly agreed by the parties.

The objective of continual review is to ensure that the Commercial Pricing Standard remains commercially sustainable, professionally defensible and aligned with the long- term objectives of the Professional Practice.

The intent of this publication is to establish the commercial principles governing the pricing of Professional Engagements undertaken by the Christine Po Professional Practice.

This publication defines how Professional Engagements are valued, how pricing methodologies are selected and how professional fees are governed.

It intentionally excludes project-specific pricing, schedules of rates, quotations and commercial proposals.

Those matters shall be established through project-specific commercial documentation prepared in accordance with this publication.

Commercial pricing exists to support the Professional Standards, preserve professional independence and ensure the long-term sustainability of the Professional Practice.

The Commercial Pricing Standard shall be interpreted consistently with the Christine Po Professional Standards and applied in a manner that promotes fairness, transparency, accountability and professional excellence.

This Revision History records the publication history of CPS-006 and provides a controlled record of approved revisions made throughout the lifecycle of this publication.