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RE: Engineering compensation

[Subject Prev][Subject Next][Thread Prev][Thread Next] As a developer of BillQuick (Time Billing Software for consultants), we have had the opportunity to research consulting costs, billable rates etc.

Based on the information gathered by our staff and our independent research, most services oriented companies have an overhead factor anywhere between 2.1 and 4.0. As an example, here in California the most reported overhead factor is 3.5. So, if you are in California and have an employee who makes $20 per hour, the minimum bill rate for that employee is 20 x 3.5 = $70 per hour. Remember, at this rate you are not making any profit. That rate is your true cost. :-)

Shafat

"If you really want that project, you will under-estimate your involvement."


At 05/01/01 10:47 AM, you wrote:
I think George means 6% of the property's completed value, not just the percentage of the structural work.

Stan, do have any decent competition in the area or do your clients have money to blow? Or could it be that you have a corner on the market of some highly technical design. The reason I ask is that when dealing with architects as the prime, they like (so I've heard ... no concrete evidence here) to frequently shop around like buying a used car (so and so will do it of 10k less ... etc....) An architect would not likely give away 14% of the project value to the engineer so easily in my opinion, if they could have it for themselves.

-Gerard

p.s.: I hope you are not all pissed off at me from the other day.... Just defending my home town that's all - just as you are prideful of Dallas.

GO Giants, Niners, and take the Warriors with ya !

>>> scaldwell(--nospam--at)halff.com 05/01/01 10:17AM >>>
George Richards wrote:

I dream of what I call the  SIX PERCENT SOLUTION.  The EOR should get 6% of
the value of the project for his services, for being responsible for the
health, safety and welfare of the public.

George: 

Why settle for 6% of the value of the structural work?  Although we
occasionally settle for this, we frequently get 8% or 9%, and occasionally
get up to 14%.  In my opinion, anyone working for less than 6% of the value
of the structural work is doing themselves, their families, and the
profession a disservice!

Regards,

Stan R. Caldwell, P.E.
Dallas, Texas ... Go Stars! Go Mavs!  


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