Questions Continue as to Prices in Contracting for Architectural-Engineering Services Under the Environmental Protection Agency Construction Grants Program

Payments to consulting engineers under Environmental Protection Agency (EPA) grants for municipal waste treatment plant construction may comprise about 10 percent of total program costs. In 1975, EPA issued regulations for procurement of architect-engineering (A/E) services which prohibit contracts to firms which base profits on constructions costs, allow fixed-price contracts only when work can be clearly defined, and require grantees to negotiate contract terms with contractors.