Expert witness work: fee multiplier? First time, risks involved? 10

[thejonster]

There are only a couple applicable topics on a search of 'expert witness fee', with some great clues but nothing conclusive for me.

My old firm / I was brought in late to a large project that had a lot of problems years ago to solve several issues structurally. It's now going to arbitration and after I've left that firm I'm being asked as a private individual to be an expert witness for the first time.

What is an ordinary and common fee multiplier for this type of work? Where normal design work pays 2.5-3x of what an employee salary /hr would be paid, I'm seeing multipliers for expert witness work on the order of 5x, 9x, 10x, and as high as 15x for this type of work because it takes precedence /priority over projects I'm currently working on. What are current multipliers being used?

They're telling me that they have a filing deadline in 3 months (for statues of limitations) and that it would be incomplete without my involvement because I did all the site visits and extensive reports pointing out everything that did not conform to the contract documents.
What would be proper for someone to propose for their first time in this type of work?

Or maybe more importantly, should I avoid involvement in the arbitration and focus on building my own business? Are there risks I'm not thinking of..

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Thank you in advance.

 

[dik]

I don't know how the industry is, but I used a factor of 2.5.

Rather than think climate change and the corona virus as science, think of it as the wrath of God. Feel any better?

-Dik

 

[thejonster]

dik, thank you for your response. 2.5 to 3 x normal salary / hr is a typical design fee.
I'm guessing you mean that you use 2.5 times your typical design fee. For the purposes of the original question, this would calculate out to 6.25x to 7.5x multiplier

So as an example, someone making $50/hr is billed out at $150/hr for design work, and as an expert witness would bill out $50 x a higher multiplier for prioritizing the expert witness work, maybe $50 x 10 = $500/hr for court apperance time.

 

[IRstuff]

Part of the "wrap" rate, i.e., the multiplier, should include indirect costs, like travel/travel times, waiting times, testimony preparation, calculations, etc., but much depends on how the hours are billed. If you are only allowed to bill actual hours on the stand, then a much higher wrap rate would be called for, compared to billing total hours incurred.

TTFN (ta ta for now)
I can do absolutely anything. I'm an expert!

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[phamENG]

It sounds like they want you to be a material witness, not an expert witness. An expert witness is typically a neutral party offering professional/technical insight. Tread lightly (and discuss this with your own lawyer).

But yeah - 2 to 3x is usually reasonable for court appearances and depositions. I haven't done it myself, but I've looked into some and dik is pretty spot on.

Edit: sorry, misread your question. The 2 to 3x is a factor applied to typical billing rates.

 

[JoshPlumSE]

I've typically seen (for other industries) an expert witness fees along the lines of the following:
a) Prep work = Something close to normal hourly rate you would charge any other client. This includes reviewing information for the case, writing reports and such. The idea is that the work is not that much different from the other work you do. I can see an increase (30%~50%) for people that aren't accustomed to this work or to cover additional costs (changes to insurance rates or such).

b) Depositions or Trials = Something like 3~5 times what you charge for item (a) above. Maybe 3x for depositions, maybe 5x for an actual trial.
With a minimum of 1 hr charge for each event.

Disclaimer:
I have not done any expert witness testimony myself. But, my father ran a company that specialized in expert witness testimony on economic issues. So, my comments are based on my recollection of what their fees were.

Note: I remember my Dad getting lots of subpoenas when I was young. Sometimes, he had to go to court and refuse to testify because he hadn't been paid. You have to be prepared for weird situations like that because it happens.

 

[dik]

...even court time is at 2.5x.

Rather than think climate change and the corona virus as science, think of it as the wrath of God. Feel any better?

-Dik

 

[thejonster]

Josh,

Thank you, your answer is as conclusive as I could ask. I spoke with the lawyer again who contacted me and he said none of your numbers sounded shocking, so I think that's on the right track. It sounds shocking to me though!

Here's how your numbers work out with $50/hr base salary as an example (using the 50% high end increase)

 

[thejonster]

Pham,

I spoke with the lawyer again, and yes I would be an eyewitness, but in addition also calling upon my professional judgment because I have the credentials and experience to make the recommendations. He said he was killing 2 birds with one stone.

Also, yes this calls for a visit with my lawyer before jumping in. Arbitration sounds more casual than a court case, but I still need to find the risks involved here.

Thank you for the response.

 

[phamENG]

Yeah...maybe it's just that I don't generally trust lawyers that I'm not paying...but if you could be in any way considered culpable, it seems like they could use your 'expert testimony' against you later if they decided you were a sufficiently juicy target. But then again I may not be understanding the whole situation completely.

Either way - good luck. I've known some engineers to have very lucrative careers in the expert witness arena.

 

[Ron]

If this is a "one off" thing, then a multiplier for expert witness services is OK. I don't use a multiplier and I do a lot of expert witness work (about 70 percent of my work is litigation related, resulting in testimony). I've done 26 trials and over 150 depositions....I charge the same for all (my rates are quite a bit higher than rates for design or general consulting work). Time is time and you should charge for it. I have had clients say that my rate is too high for some of the work I do for them that is not related to litigation. My response is that why would I reduce my rate for other work when I'm taking away time that I could be charging higher rates for.

Your exposure to claims is not high for expert witness work...typically less than for design work. One thing to keep in mind is that your integrity is of utmost importance. While you can help either the plaintiff or defense side with good, sound engineering, you cannot yield to a client's position in litigation if it is not in keeping with appropriate engineering. In short...don't tell them what the want to hear, tell them what the engineering tells you!

 

[MIStructE_IRE]

This sounds like you’ll be asked to tell tales on your previous employer, not act as an expert witness.

This will get messy. Personally I’d politely decline.

 

[Tomfh]

I agree this is a very murky situation. All our expert work involves projects we’ve had nothing to do with.

 

[EdStainless]

I bill by the hour, about 1.5x my consulting rate.
All expenses are billed at 1.05x of actual
I bill travel time as 1/2 of the full rate
And I estimate total time and request 2/3 payment in advance.

= = = = = = = = = = = = = = = = = = = =
P.E. Metallurgy, consulting work welcomed

 

[SWComposites]

Ask the lawyers what their rates are, then use that. Why should we be paid less than the lawyers?

 

[thejonster]

Not sure if this makes a difference to you all but the arbitration is with one or more of the contractors.

The architect for his part was the cause of some of the design problems early on doing the structural engineering himself, but he made things right by bringing us on to provide a structural design set.

The problems continued with contractors cutting holes in the structural numbers when the plans were approved and I wrote several reports addressing the structural issues this created and the fixes required. The arbitration involves the contractors. The lawyer wants me to create a document that summarizes the reports and witness to what I found.

I will be speaking with a lawyer before signing any contracts regarding this and asking their opinion of the risks involved. Thank you for your responses I really value the experience you bring to this.

 

[thejonster]

To follow up, there is a category of witness who is a material witness that can also give expert opinion as to what they saw, called a hybrid witness, see related links below. I work down the hall from a lawyer who uses expert witnesses who said that this is used in cases regarding various professions, and that I should be compensated for my time.
[Working with Non-Retained Experts: What You Need to Know (expertinstitute.com)](

https://www.expertinstitute.com/res...-non-retained-experts-what-you-need-to-know/)

[What Is the Difference Between a Retained and Non-Retained Expert Witness? | ExpertPages Blog](

https://blog.expertpages.com/workin...retained-and-non-retained-expert-witness.htm)

The lawyer hiring me sent over a contract that he said would cover me very well. I found a contract in a google search that is used by a firm in the US that was very similar and helpful. I'm not sure where the hiring lawyer got his copy, as it was almost identical to what I found, but left out the provisions for indemnification, standard of care, liability limit, and severability (those are some biggies!), so I added those provisions to roughly match what is in this link:
expert-witness-terms-conditions.pdf (abdengineering.com)
also attached in post as found on their website

The work:
The contractor's work is in question, my reports detail the work to repair what they damaged. I will summarize the work in a new shorter report that is more readable for the arbitors.
I would defend my work and assumptions against a rigorous defense of their actions, where they would be picking apart my plans and reports the best they could, saying they should be allowed to cut members without telling us.
There is a chance that they will settle before going to arbitration.

The risks:
The lawyer I spoke with said it is extremely rare that an expert could be sued for doing a bad job at testimony, they'd have to prove that they could have won their case if it wasn't for ___.
I believe my involvement / testimony could potentially open me up to liability, just as any engineering work would, so this contract limits it to the compensation received.
Any work I did under my employer would be covered by the employer & their insurance for their liability, I'm willing to state the facts and my opinions, back them up, and defend them and the work I did.
Whatever previous work I did could theoretically be so bad they'd turn me in to the state board, just as any work could be at risk for, but they're looking at the work anyway so it's not an additional risk.
I don't see liability beyond this. Please reply if you see additional risk I'm not considering.

The compensation:
Similar to what Josh said above, as case prep work / report writing I am charging 1.5 x my normal billing rate. 2.5x both for rush work (within 5 days) and for deposition testimony. 3.75x for Court / Arbitration Appearance x5h for half day and x8h for full day flat rate, the lawyer I know said this would be the highest reasonable and it reflected my willingness to cancel plans I had for that time of year.
I got a retainer of 2/3 up front of the anticipated report writing. Any reports are delivered after payment received in full. Any testimony would be paid for 5 days ahead of time.