Need a book? Engineering books recommendations...

Return to index: [Subject] [Thread] [Date] [Author]

Re: Catch-22 Software Cost

[Subject Prev][Subject Next][Thread Prev][Thread Next]
I understand your dilema and it is a very good point.  The real benefit of
the software is being able to do "lump sum" jobs with it.  We also do steel
detailing and use Tekla Xsteel for a lot of this work.  Most of this work is
bid lump sum, but extras are usually done at an hourly rate.  If the work is
Tekla related, I charge a higher hourly rate to take into account the cost
of the software, maintenance and training.

Best regards,


Ken

Kenneth S. Peoples, P. E.
LVTA
Lehigh Valley Technical Associates, Inc.
1584 Weaversville Road
Northampton, PA 18067

Phone: 610-262-6345
Fax:610-262-8188
Email: kpeoples(--nospam--at)lvta.net

----- Original Message ----- 
From: "Rich Lewis" <sea(--nospam--at)lewisengineering.com>
To: <seaint(--nospam--at)seaint.org>
Sent: Friday, December 10, 2004 8:36 AM
Subject: Catch-22 Software Cost


I would like to know if anyone charges for the use of software in their
design.

Let me explain a particular situation.  I am a small, one-man firm, that
is getting established.  I am working on the design of a special
foundation.  The project is an hourly fee plus expenses.  I don't have a
choice on that right now.  I could do this design with the limited
software I have and by hand calculations, but it would be much more
efficient if I bought some special foundation software and designed it
with that.  The dilemma is that since this is an hourly fee the software
that helps me be more productive actually reduces my fee.  On top of
that I still have to put out for the software.  That's what I think is
the Catch-22.  If I become more productive by making a capital
investment then I reduce my fee, hence making my capital improvement
harder to pay for.

Now you could say that I still have the software to use on future
projects.  That's true, but future projects are again cut short fee wise
due to the increased productivity.  That means I need a lot more
projects to recoup the cost.  That also assumes I will have the kind of
projects that will need this software.

I was thinking about charging a "use" fee on the software to help recoup
some of the cost.  Is this commonly done by others?

If you are tempted to change this thread into an argument of "for or
against" hourly fees I ask that you start another thread because I would
like this one to address the issue of capital improvements and recouping
costs and not get sidetracked.

Thanks.


-------------
Richard Lewis
Lewis Engineering




******* ****** ******* ******** ******* ******* ******* ***
*   Read list FAQ at: http://www.seaint.org/list_FAQ.asp
*
*   This email was sent to you via Structural Engineers
*   Association of Southern California (SEAOSC) server. To
*   subscribe (no fee) or UnSubscribe, please go to:
*
*   http://www.seaint.org/sealist1.asp
*
*   Questions to seaint-ad(--nospam--at)seaint.org. Remember, any email you
*   send to the list is public domain and may be re-posted
*   without your permission. Make sure you visit our web
*   site at: http://www.seaint.org
******* ****** ****** ****** ******* ****** ****** ********


******* ****** ******* ******** ******* ******* ******* ***
*   Read list FAQ at: http://www.seaint.org/list_FAQ.asp
* 
*   This email was sent to you via Structural Engineers 
*   Association of Southern California (SEAOSC) server. To 
*   subscribe (no fee) or UnSubscribe, please go to:
*
*   http://www.seaint.org/sealist1.asp
*
*   Questions to seaint-ad(--nospam--at)seaint.org. Remember, any email you 
*   send to the list is public domain and may be re-posted 
*   without your permission. Make sure you visit our web 
*   site at: http://www.seaint.org 
******* ****** ****** ****** ******* ****** ****** ********