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]
A number of years ago my employer included a fixed hourly "computer
charge" for all CAD time spent - intended to recoup the costs of
frequent upgrading of computers and software for CAD. But clients
started complaining that this should be a cost of doing business, i.e.
part of overhead, so the practice disappeared over time. 

William C. Sherman, PE 
(Bill Sherman) 
CDM, Denver, CO
Phone: 303-298-1311
Fax: 303-293-8236
email: shermanwc(--nospam--at)cdm.com
 

> -----Original Message-----
> From: Daryl Richardson [mailto:h.d.richardson(--nospam--at)shaw.ca] 
> Sent: Friday, December 10, 2004 9:03 AM
> To: seaint(--nospam--at)seaint.org
> Subject: Re: Catch-22 Software Cost
> 
> Richard,
> 
>         One of my former employers, a large multinational 
> engineering firm, used to charge for computer time as you 
> propose (whether they charged for the software itself or not 
> I can not confirm) so there are precedents for it.
> 
>         On the other hand, there may be (I think there is) 
> something in your software license and in the copyright which 
> prevents this.
> 
> Regards,
> 
> H. Daryl Richardson
> 
> 
> ----- Original Message -----
> From: "Rich Lewis" <sea(--nospam--at)lewisengineering.com>
> To: <seaint(--nospam--at)seaint.org>
> Sent: Friday, December 10, 2004 6:36 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 
> ******* ****** ****** ****** ******* ****** ****** ******** 
> 

******* ****** ******* ******** ******* ******* ******* ***
*   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 
******* ****** ****** ****** ******* ****** ****** ********