Source 4 Industries – Consultation and Project Engagement Policy
Effective Date: 6/15/2025

1. Consultation Fee Policy – Material Handling Division
Source 4 Industries (“S4”) provides expert consultation services for the design, permitting, and
execution of material handling solutions, including pallet rack and shelving storage system
installations. Due to the significant time and expertise involved in preparing comprehensive
project assessments, the following fee structure applies:

Initial Consultation Fee
 A minimum consultation fee of $495 will be charged for the first hour of project
consultation.
 This fee includes:
o Site assessment (if applicable)
o Review of existing conditions
o Preliminary project recommendations
o Permit and code compliance guidance
o Fire system and slab review support
o General planning assistance

Additional Consultation Time
 If further consultation is needed, a rate of $349 per additional hour will be charged,
billed in 15-minute increments.

2. No-Charge Estimate Qualifications
No consultation fee will be charged if the customer provides all of the following information
in advance of requesting a formal quote:
 - A complete and accurate material list, layout, or design of the proposed system
 - CAD or electronic drawings of the facility and intended storage area
 - Fire suppression system specifications, including design density, coverage, and system
type
 - Building slab specifications, including thickness and PSI rating
 -Any other structural or fire-related data required to prepare a building and fire permit
When all documentation is submitted and verified, S4 will provide a comprehensive
quotation covering:
 - Material cost
 - Labor and installation
- Freight and equipment rental
 - All permit, engineering, and inspection-related fees
 - A turnkey project scope for customer review

3. Important Clarifications
 The consultation service is informational only and does not constitute a guarantee that
the proposed project is feasible or that S4 will be able to complete the project as initially
envisioned.
 If the customer’s facility lacks sufficient infrastructure (e.g., fire suppression, structural
support), S4 will advise accordingly and propose alternatives if available.

4. Credit Toward Project Award (with Threshold Conditions)
If a customer engages Source 4 Industries for consultation and subsequently awards the full
project to Source 4—including submission of all signed documents and initial
deposit—consultation fees will be credited toward the total project cost, subject to the
following conditions:
Eligibility Conditions for Credit:
 The total awarded project value must exceed $15,000 (materials, labor, permits,
freight, and engineering combined).
 The anticipated gross profit margin on the project must exceed 35%.
 The total consultation credit applied may not exceed 20% of the awarded project
value.
 Consultation fees eligible for credit include the initial $495 minimum and any additional
billed hours at $349/hour.
Example:
 If a customer is billed $2,000 for consultation and the project awarded is $25,000 with a
40% gross margin ($10,000 margin), then the full $2,000 may be credited.
 If the consultation fees total $5,000 and the project value is $7,500 with a margin of
$3,000, no credit will be applied, as the consultation exceeds the project profit and does
not meet the minimum thresholds.
Credit Terms:
 The consultation credit will appear as a line-item deduction on the final project invoice.
 No refund or cash-back value will be issued if the consultation exceeds the eligible credit
threshold.
 This policy helps ensure that project profitability supports the value of time

 Only projects over $15,000 are eligible.
 The maximum credit allowed is 20% of the total project value.
 If the consultation fee is less than the cap, the full amount is credited.
 If the consultation fee exceeds the cap, only the capped amount is credited.

5. Purpose of Policy
This policy is intended to ensure responsible use of Source 4 Industries (S4 racks(; resources and reduce the financial burden of providing professional services without project commitment. It helps offset the time, labor, and administrative costs incurred in pre-construction efforts and ensures that Source 4 can continue to provide high-quality service to all customers.