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RE: Catch-22 Software Cost

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Bill:

They likely "disappeared" into the regular hourly rates that the company
charges.  Just because you don't see, doesn't mean that it is not there.
<grin>

Regards,

Scott
Adrian, MI


On Fri, 10 Dec 2004, Sherman, William wrote:

> 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
> >
> >
> >
> >
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