Contractor Software Management

[13]

What does everyone do when it comes to managing contractors and software licenses?

For example,
do you require your contractors to buy their own license?
Offer a leasing program,
or give them seats to use in the company?

Or any combination listed above?

Thanks,

-13

 

[MadMango]

I guess it depends on the type of contractor.

If it's a engineering/design contractor, it depends on the initial contract, and what the "deliverables" are for the contract period. It might not matter what file format the deliverable is in, and therefore doesn't require a license of SW. I don't think we've ever leased or let a designer use our own licenses. If we require SW file formats, then it's up to the engineer/designer to supply it... if that means they have to go out and purchase SW, that's on them to do.

If it's an in-house "drafting" contractor, we usually give them a license to use in-house.

Wanna Tip? faq731-376
"Probable impossibilities are to be preferred to improbable possibilities."

 

[StarrRider]

13

This is really a good question. When we originally installed SW we asked our VAR what policy SW had on this issue and were told that each of us could copy the CD and install it on our home system. Well it has been years – and many of us are no longer there. Are they still using SW on those machines (I am). Are they earning an income doing that (I’m not).

I do know that if I acquired a long-term (in-house) contract with someone using SW – I would request my home system to be upgraded using their license. If I worked from home and had to purchase SW – I would transfer that cost to the company I was contracted to.

But what about the short term stuff – where it simply isn’t economical to purchase SW – lets say a 2 week contract at $25 an hour ($6,000 before taxes) – I’m not sure if this would even cover the cost of SW (after taxes are removed) – Even if it did – unless my dream was starting a contracting business and it looked like I would find additional contracts – I somehow doubt if that would happen

Fortunately – I don’t think that SW is worried about it – and that is the answer I think

Lee

Consciousness: That annoying time between naps.

 

[TheTick]

With contractors working t customer site, I have never seen a company work on a "bring-your-own-license" basis. They are paying for personnel, not software.

I had a boss that would bring in his own UG box when seats were in short supply. In that case, a compromise was reached between the at-customer personnel rate and the "in-house" rate.

I may make you feel, but I can't make you think.

 

[StarrRider]

TheTick

Yes – if the contractor is working in-house then you are purchasing their services and not their license. The question is – What if they are working for you but not doing that work in-house.

As an example: Let’s say you have 90 models that simply have to be detailed by Friday and do not have the staff to get the job done. You could offer me – or anyone else – the work for a specific sum.

Now – are you relying on their licenses or not.

I was recently submitted to a contract for SolidWorks. I did not get the contract, but if I had I would have received a beta release of SW2004 in addition to several other software packages. If I had received the contract I am sure that I would have had to sign a statement that I would erase those packages when the contract was completed – but that is beside the point.

The question is – can that idea can be transferred and used in the situation given above. I do have a reason for pondering these things.

Lee

Consciousness: That annoying time between naps.

 

[13]

Thank you everyone for your replies. What do you think of the following scenario:

1.) All full-time staff gets access to Solidworks. Probably through a key server setup, floating license. So if you have 15 engineers, all using SW half-time you buy 8-10 licenses.
2.) For all CAD operators offer the following scenario:
a.) Offer using SW in-house through our key server
b.) Make them buy their own software
c.) Offer them a leasing service, where we buy the
software and have them lease it from us=to the
maintenance costs. When they leave, they delete
the software.
3.) For all mechanical design contractors:
a.) Make them buy their own software-set deadline
b.) Offer them a leasing service, where we buy the
software and have them lease it from us=to the
maintenance costs. When they leave, they delete
the software.
4.) From here on out specify in the job description SW20XX will be used.

It is hard to satisfy everyone's needs, but it is necessary to be compliant with the laws regarding the use of software.

Any comments?

Thanks.

Keep in mind we have no "CAD Managment" Dept and prob. never will.

 

[Rocko]

I know for a fact that Pro-E has a program for just this situation where you can lease the software and it will time out at whatever length you paid for. I probably would call SW directly and ask them if they have something similar for your situation.

 

[StarrRider]

TheTick

That is cute. What country did you say you were from? I live in America and I have been on CAD systems continually since 1987. I used a CAD system for the first time in 1981. In all of that time – I have never had to pay for the software that I used to do my job.

So you want to cut the cost of your CAD system by making your Employees pay for it. What are you going to give them in return? You were planning on PAYING them for the $4,000 investment that you are asking them to make are you not? Or did you simply plan to force them to pay this amount and expect them to thank you for their jobs? If the latter is the case – you might end up speaking with your state labor board.

Now if you asked me to make a $4,000 investment – and if I agreed to it – the day that I am terminated I would expect to be able to take my license with me. I was forced to pay for it after all. Oh yes – you did say something about a lease didn’t you. Perhaps you had better check with SolidWorks to find out if they allow their licensees to be sub-leases like a cheap apartment. Yes – I do know that they will allow 10 licenses to be shared by 15 people but that isn’t what we are talking about now is it? We are talking about charging your employees for the pleasure of working for your company.

Are you starting to understand how I would feel about this?

Personally – Last year I was given a $15 bonus check (before taxes). I never did cash that check. I kept it as a reminder that some people are born without a clue. To me – that check was as much of an insult as the $10 bonuses that were automatically added to my salary every Thanksgiving and Christmas. If you are too damn poor to give a bonus that means something – then don’t do it.

In your case – lets amend that a little. If your too damn poor to purchase SolidWorks for your Engineers and Draftsmen to use – then purchase something that you can afford. Yes – you will take a productivity hit – and you probably will not be working with solid models – but the choice is yours. If you want to have productive people and you do not want mistakes that can cost you money – you have to provide the tools that will enable that to happen.

You seem to be extremely worried about staying completely legal. In case you missed what I said earlier / or SolidWorks has changed their policy / SolidWorks allows multiple installations of their software. With every version of SolidWorks that I have used since SW99 – they have known that there was more than one installation with that number. For the last 2 years it has been installed at work / at home / and on my laptop. They are rarely all on at the same time but I have logged onto subscription support with all three systems in the same month. Check with your VAR if you do not believe me.

Lee

The voices talk to you to – don’t they?

 

[13]

Hello Lee,

Thank you for your candor. Now, first...1.) I believe that all our CAD operator contractors should have access to Solidworks that we provide. (that is my humble opinion) 2.) Independent mechanical designers should have their own tools if that is what has been agreed upon between employer and employee. When they contract work they should own a license and it should be legal. If the agreement for the contract is to use the company's license, then so be it. But the agreement has to be wrapped up at that time. 3.) You may install SW on your computer at work and at home. BUT YOU CAN NOT USE THEM AT THE SAME TIME. That is illegal. You can only operate as many licenses as you own simultaneously. 4.) It is not a matter of being too "poor". The idea is, if say we have 15 engineers and 15 contractors (both CAD operators and SW designers), should we buy 30 licenses, and then when all the contractors leave be sitting on 15*$6000+1300/year/seat? I don't believe this is a good way to manage resources.

Remember, this post was to explore the possibilities that exist but to find the best solution for everyone.

I'm American but isn't that irrelevant to this post?

 

[Rocko]

Chrysler use to have the software for contract employees to use thus legally they held clear ownership of both the models and software. Also a contract employee is typically a hired gun who is used when the feasability of a long term employee does not make since ie.. project lasting only a short period of time 1month to 1 year. Plus you save not offering the same benifits.
Also remember the difference between a outside firm doing engineering for you and a contract employee who gets a paycheck from you. Most outside engineering firms will have a seat of the most standard cad packages. If they do not then they will typically send a neutral format or offer for a fee to have it translated into the native format of your choice.
I have never seen a company make a contract employee buy the software in order to work at a company. I have seen however a company make a outside engineering firm buy a cad package in order to get the business.

 

[StarrRider]

13

Sorry – I only got a couple of hours last night and I may be just a little cranky.

I still think that you are looking for problems where it doesn’t exist. Every company has times where there are workload fluxes and your VAR is the person that you should be talking to. In my last position we started out with 5 SW seats and a year later we dropped 2 of them because of layoffs and we simply couldn’t afford them. The next year when we paid for the subscription service – I believe they paid for all 5 seats again. They may have been asked to pay a penalty – I don’t know but I don’t believe so.

Several years ago I was working for a company that gained a government contract that had to be finished in 6 months. They were undermanned at the time (9 operators) and had to hire 15 or 16 contractors to make it happen. The solution they found was to lease 4 additional CAD systems (complete with AutoCAD already installed) from their VAR. The staff was told what the situation was and politely asked to volunteer for the second shift. We were working 10 and 12-hour days at the time (Aviation) but enough people volunteered so that the contractors were fairly evenly split between two shifts. They also changed our normal working hours. First shift started at 6 AM instead of 8 and worked until 3 or 4 PM - Second shift started at 4 PM and worked until 2 AM. This gave both shifts access to people who normally left at 6 PM.

There are always ways to make it happen.

Part of the problem with contracting is that many companies do not have common courtesy when it comes to contractors. Most of the time – both parties are honorable but at times it doesn’t work out that way. I have seen companies dismiss half their contractors at 4:45 on a Friday – with no notice and not even a goodbye kiss. Others companies simply misjudge everything – 3 contractors are hired for a 6 month contract and work for 6 weeks. Some companies use the Contract to Hire idea in excess – If the contractor IS GOD – then MAYBE we will hire him. Try working for 10 months on a Contract to Hire position – never missing a day or calling in sick – only to be told after you have repeatedly asked and filled out your third application that you don’t meet the “Profile” of the person they want to hire because you’re a contractor and have had too many positions? – I ended the contract that day and was working somewhere else the next week. Two months later I was offered a short-term (2 month) contract with them – which I accepted – but the salary was half again as much as what I was originally paid.

A lot of this depends on the kind of contractor your looking to hire. Most contractors use a Job Shop (Temporary Agency) to handle the mundane details like finding the contract, paying taxes, medical and dental insurance. They work for the agency at your establishment under your supervision. You are normally given a specific rate – which is around 1.5 times the contractor’s salary. That salary should be as much if not more than what you pay your employees. With a Job Shop – make your deal with them and not the contractor. I have seen companies who specialize in this – they normally are not in business for more than a couple of year though.

If you advertise – you can also find contractors who are willing to do those mundane tasks themselves and work directly for you. You will still be paying about the same amount (1.5 times the normal salary) but they are a little hungrier. This is the kind of contractor that may go for the deal if you sweeten the pot enough. I personally wouldn’t have a problem with this providing everything was done up front and some stipulations were made
First – I would expect an even higher difference in salary.
Second – I would need to know that the only way I would get the contract was if I had that license.
Third – Don’t even bother offering your “Lease idea” to anyone – That comes a little too close to being forced to pay for a position.
Fourth – This is a substantial sum and I would need some assurance that the company wouldn’t drop me at the toss of a hat. Most people simply do not have that kind of money to invest. Offer to finance the purchase over a 6 or 9-month period and put it in writing that he will be reimbursed if you end the contract early. This still allows you to dump a problem child and sell the license to his replacement.

Finally - Be sure to let your VAR know what you are doing and why. Have them supply you with a letter form SolidWorks Corp. stating that this is permissible. You can buy SolidWorks on E-Bay but even if you have the box and original CD – the license is not valid. SolidWorks is very strict about the way a license can be transferred.

Lee

You are just jealous because the voices only talk to me.

 

[MadMango]

Hey 13,

I agree with item 1. The only draw back is when you have several projects happening at once, and you have guys waiting to get an open license of the software. We used to share ACAD licenses with a sister Canadian company. Due to the time difference, in the mornings there were no licenses to be had, but in the afternoons it was no problem. We just learned to back-burner anything that had to be done in ACAD untill the afternoons.

I agree with 2.a., especially if these are in-house employees. I would say 2.b. only applies to off-site contractors. I would be looking for another place to work if 2.c. were to apply where I work.

3.a. and 3.b. again should only apply to off-site contractors.

Item 4 sounds fine to me.

As for your last line, "we have to CAD management", that's really scary. I think if you had the intiative to post here, I think we all know who is going to be the "CAD manager" in the future.

Also, StarrRider makes a good point about contacting your VAR on questions like this and getting a letter from them.

Wanna Tip? faq731-376
"Probable impossibilities are to be preferred to improbable possibilities."

 

[2Dto3D]

13,

I'd say MadMango sums it up pretty much in line with my thinking.

All I have to add is that it boils down to two types of contractors; those who own their own CAD software and those who don't (probably the majority, especially if you're talking about drafting help). They both serve their purpose.

Some, like myself, own their own software so they can work for anyone. Potential customers include individuals or companies who have no long term need for SolidWorks to justify their owning it, or who are just temporarily extremely busy, but don't see themselves needing the extra help long enough to justify extra licenses – and maybe the extra space & hardware, too. It’s understood that a contractor who is required to use his/her own license will naturally demand a higher rate than one who isn’t.


Charley Leonard
CSWP

http://www.2Dto3D.com

 

[13]

Thanks everyone. You have all been extremely helpful!

-13