Fees 10

[kmead]

I would like to know if there's a rule of thumb on what the structural engineering fee is in relation to the square footage of the building. I know that it varies with a lot of factors such as complexity of the job and the scope of services, but I am just looking for a starting point to help me set a reasonable fee. Thanks in advance.

 

[archeng59]

one thing I always remember is that old joke about the retired engineer who charged $50,000 to fix a problem. When the client complained about the fee, because it only took the engineer a short time to solve the problem, the engineer said the fee was based on $1 to fix the problem and $49,000 to know how. In my opinion, our fees should not just cover our production costs. Our fees should include enough to cover liability risks and the use of our knowledge. The question is: how much more to charge the clients for the risks and knowledge part of the project?

 

[cap4000]

archeng59

I thought only lawyers got paid for know how. Only occasionally us engineers get paid what we really deserve.

 

[archeng59]

cap4000, that's our fault as an engineering profession for not charging the correct fees. In my opinion, part of the problem is architects. Our fees are tied to whatever they agree to accept from the client. At least in my part of the world. When I'm able to work directly for the owner, my fees are generally better than when working thru the architect.

just wondering, how many of you set your fee agreement as a % of construction costs instead of a fixed fee? I always do a fixed fee contract. When the architect asks me to do a % of construction cost agreement, I refuse. I sell the fixed fee two ways: 1) If I do a % of construction cost, I want the construction costs to be as high as possible so where is the incentive for me to be economical? 2) what part of the construction costs will govern my final fee and how do I verify those costs?

 

[Dinosaur]

Let's face it guys, we get paid what we do because there is always another structural engineer out there ready to cut your throat! I work in transportation (bridges, O/H sign structures, etc.) industry and I see the structural engineers know and do so much more than the other civil engineering disciplines. But we don't get any more money and are often the butt of so many jokes because we don't "get it" (usually with regard to the big picture).

I also see structural engineers dying to show how they know a little more than the next guy, or that the other guy could have done such-and-such better. The joke that I am reminded of is,

Don't wrestle with a pig. You both get dirty and some may not be able to tell the difference when it's over.

My 2 cents

 

[archeng59]

"don't wrestle with a pig." good one.

also, you gotta get your hands dirty when the gutter needs cleaning. we don't make progress without challenging the status quo. if challenging ideas never happened, we'd all still be living in Europe thinking the world was flat.

 

[mrengineer]

Those who derive their fees based on percentage of construction cost are mostly using "total" construction cost. We frequently do on the basis of "general" construction cost, exclusive of M-E. Anyone else doing that?

 

[DGpe]

I do both residential and commercialwork. Typically residential work runs about $1.25/sq.ft. and about half for a repeat fee, althugh there are people out there that will charge about $0.75 per sq.ft. and a few hundred dollars for repeat fees...ludicrous.
Commercial work is a whole different game. I like to price it by the sheet, $2000-to-$3000 per 24"x36" sheet. Of course, the money is in the revisions and inspections...particularly inspections.
Also, as someone said before, you get what you pay for. The South Florida market is tough. The Plans Examiners are all reistered structural engineers and the require calculations to the last nail...it's good and bad. Some are semi-retired individuals that don't really care and some are very sharp engineers that can really be a pain in the butt because some of the stuff we do is "empirical" (time tested) and you cannot really put a number to it...But they always want calculations. So your fee, must be adjusted accordingly.

 

[akastud]

I get frustrated because our plans examiners are not competent. Civil engineers in the area will design retaining walls that don't in any way meet code requirements. They do very little work, charge very little and the walls are cheaper to build because they do not have sufficient reinforcement or footings. As we all know they work decently for a fair amount of time, but that doesn't make it right. Unfortunately sometimes when these guys have a program they feel competent and from what I've seen it isn't so.

akastud

 

[MotorCity]

I know this is an old thread, but I came across some information others may find useful. I was preparing a cost estimate and was surprised to find an estimate of engineering and architectural fees in the Means Facilities Construction Cost Data. I've always found it to be a reliable resource. It also provides alot of good information on SE fees based on type of project, size of project, etc.

 

[archeng59]

I am aware of the Means fee info. curious to know if anyone is getting fees of those magnitudes. they are 40% to 50% higher than what engineers are getting in my part of the US.

 

[CIVENG95]

And a realtor gets approx. 5% of the sale. Something is wrong