What does the Designer Selection Law stipulate regarding the payment structure in a design contract?

The Designer Selection Law is designed to ensure that the selection of design professionals is conducted fairly and transparently, and it includes stipulations about how fees are structured in these contracts. The correct assertion regarding this law is that the fee cannot be a percentage of construction costs.

This principle is important to maintain fairness in the bidding and selection process for design professionals, as basing fees on a percentage of construction costs can lead to potential conflicts of interest. If a designer's fee is tied directly to the eventual cost of construction, it may incentivize the designer to favor more expensive solutions or drive up project costs in order to increase their own remuneration.

Thus, establishing fixed-fee contracts or other structures can help ensure that the designer's advice is aligned with the best interests of the project rather than their own financial gain based on the final project costs. This approach is intended to keep the focus on the design quality and project goals rather than on maximizing the designer's earnings.