Replies

1. 
   IronHelix | Nov 02, 2004 01:10pm | #1

   I do consults/designs/inspections, as well as troubleshooting and DIY hands-on education. 

   Every now and then I hang on a belt and sweat...at a minimum of $25/hr.  Or $36/hr is I have to "sweat and think" at the same time!

   If I put on my inspection hat, sign my name and license number, I quote per each spec'd job or run with it at $50 per hour.

   FOr  consult/design/etc. I bill at $36/hr (1/4 hr. increments) plus expenses.  For my rural area expenses include such things as mileage (one way), consummables (paper, pens, duplicating, phone, e-mail, postage), materials supplied at the jobsite, and research time.

   I will attend meetings of owners with contractors, or boards of directors to explain/discuss project options, or build documents and contractor lists to bring a project to bid.

   I use a simple one page contract that simply states what I do and fees/hr.  I disclaim any license as an architect or engineer and defer my work as needed to licensed persons. End of the project or a letter of termination by either party closes the contract.  

   I've been advised to add a "hold harmless" clause....but no matter how I write it....it sounds bad.....tough to sugar coat a bitter pill!

   Hope this gives you a clue..................Iron Helix

1. 
   danc55 | Nov 05, 2004 08:46am | #5

   Thanks, IH.  I appreciate the itemized break-out of your billing; all things I know, but it helps to jog the memory seeing them on your list.

   I'm pretty sure these agencies are looking for someone to do this work on a flat rate basis, regardless of the time involved.  I'm used to billing by hours or some other quantifiable (SQ. FT., etc.).

   I've seen some jobs of the types they'll put out for bid, and I have a pretty good idea what it takes for me to do inspections, write specs and estimates; I'm less confident with inspecting other's work (I typically work alone) and issuing approvals.

   I'm also not very confident about beating these basic elements into a fee formula for a mixed lump of services, none of which can be quantified for a particular job before the work is done  (see my response to MG for my justification for even considering this dubious enterprise in the first place).  What I hope to find is a break-even figure, one that will allow me to come in under cost on some jobs (more $ for me) and occasionally over on others (less $ for me).

   Dan

2. 
   mike_guertin | Nov 05, 2004 02:59am | #2

   I never bid consulting work. I see where the agencies are coming from - they need to control / anticipate costs. But even what to them may seem like a simple $1500 project may take you nearly as much to inspect, draft specs and review.

   I only bill by the hour for such work and I do it in two stages. $125/hour for time and don't do bids.

   In the event they are looking for ways to cost control a project that has already been bid (say they anticipated a project to cost $10,000 but the bids came in around $20,000) I bill as a percentage of what my 'solutions' save them. Say I recommend that they meerly repitch a driveway rather than installing a foundation drain system to relieve a wet basement - Savings are $4000 - I bill 10% to 25% depending on my initial investigation.

   MG

1. 
   danc55 | Nov 05, 2004 08:11am | #4

   Mike,

   Thanks for the personal perspective.  I can understand your reluctance to do this sort of work on a flat-rate basis.

   In your second paragraph you mention "two stages" in your billing; would you clarify this?  I seem to be missing something.

   The agencies in question are looking for someone to give them a basis from which to judge the bids they receive--a "price point" for work they would then open for bid--in addition to writing scope of work and specs, doing follow-up inspections and work approvals, AND they want someone to do this at a flat rate.

   Having seen the types of jobs they are funding, I think over the long run I would come out pretty much even--some jobs would come in under my flat rate and I'd be ahead, others would run over and I'd make less.  The trick for me is to find that break-even point.

   I see this becoming a long term relationship with the agencies involved (don't know if they do, however) and thus a way to generate a bit of cash flow doing tasks about which I feel confident.  I don't want to sell myself short, however.  While this market wouldn't (I believe) tolerate the hourly you receive, your advice to maintain my sense of self-worth is well taken.  Thanks.

   Dan

3. 
   RalphWicklund | Nov 05, 2004 05:58am | #3

   Look at it as if it were just another job you quote. You are familiar with the work to be done so now you plug in your wage/salary needs, your overhead and profit and based on your best guesstimate because this is something a little new to you, you present your quote.

   You can't base it on a percentage of their project costs. You have to base it on the time it takes you away from whatever else you do to make your living. If you must make $100 per hour to meet your goals then that is what you must charge for your services  If it takes you 15 hours on their $1,500 project, that's the way it is - you bill $1,500. Count on every project to be different. You'll only shortchange yourself if you have to give away your hours with a one size fits all approach.

1. 
   danc55 | Nov 05, 2004 08:50am | #6

   Ralph cautions:  "You'll only shortchange yourself if you have to give away your hours with a one size fits all approach."

   But that's what they want!  (Maybe I'm feeling a little too desperate. . . .)

   Dan