Insights / 04

What does a development manager cost?

Chris Coyle, DirectorReviewed 3 min read

Development management fees are rarely published, which makes it hard for an owner to budget or compare. This is how fees are usually structured, what they should include, and where Vettex sits.

The common structures

  • A percentage of cost: a fee set as a share of construction or total development cost. It is simple, but it rises as the budget rises, which is the opposite of what an owner wants.
  • A fixed monthly fee: a set amount for each month of the engagement, agreed by project size and stage. The fee does not grow with the budget, and the owner knows the cost in advance.
  • A lump sum by stage: fixed fees for defined stages such as feasibility, planning, procurement and delivery. This suits a well-defined scope.
  • Performance-linked: a lower base fee with a share of profit or a success fee. This aligns interests, but needs a careful definition of what counts as success.

Vettex works on a fixed monthly fee, set by the size, stage and complexity of the project and agreed before the engagement starts.

What the fee should include

  • the feasibility and its updates
  • the brief
  • appointing and managing the consultants
  • the planning strategy and the authority negotiations
  • budget, cashflow and program control
  • builder procurement and contract negotiation
  • contract administration and oversight of delivery
  • reporting to the owner and financier

What it does not include

  • Consultant fees: the architect, engineers, planners and quantity surveyor are appointed by the owner and paid directly.
  • Statutory fees, marketing, legal and finance costs.

A fee that looks low because it leaves out consultant management is not comparable with one that includes it.

Vettex fee bands

Vettex charges a fixed monthly fee for development management, set by the size of the project, the stage it is at and how complex it is, and agreed in writing before the engagement starts. The fee does not rise with the construction budget.

Finished development valueFeasibility, design and planningProcurement and delivery
$20M to $50M$7,200 to $10,800a month$9,000 to $14,000a month
$50M to $150M$10,800 to $16,800a month$14,000 to $22,000a month
Over $150M$14,400 to $21,600a month$20,000 to $30,000a month

Monthly fees, excluding GST.

The fine print

Indicative
These are indicative fees for private-sector projects. The fee for your project is confirmed in a written proposal once the scope is agreed.
Complexity
Where a project sits within its band depends on its complexity as well as its size: the planning pathway and the likelihood of objection or appeal, heritage, contamination or difficult ground, a mix of uses, the number of consultants and authorities involved, the procurement route and the length of the program. A complex project can sit above its band.
Stages
The planning-stage fee runs from the first feasibility until builder procurement starts. The delivery-stage fee runs from builder procurement to handover, and includes contract administration.
Minimum project
Vettex works on projects with a finished value above about $20 million.
Changes in scope
If the scope or the program changes materially, the fee is reviewed with you and agreed in writing before it changes.
Fixed for the engagement
The agreed fee holds for the term of the engagement. The bands are reviewed each September, and a review applies to new engagements only, never to a project already under way.
Billing
Fees are invoiced monthly in arrears, on 14-day terms.
Other engagements
Advice to an in-house team or board, and the other services, are quoted for the scope. The Site Appraisal has its own fixed fee.

Last reviewed September 2026

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Start witha fixed fee

Not sure the project should go ahead? A Site Appraisal takes about two weeks, and the fee is credited if Vettex runs the development.

Site Appraisal