Hourly Rates vs Fees vs Liability

[Timme76]

Hi all,

I have a general question, especially Structurals here. I get alot of jobs from various architects and owners wanting to pay for my services buy the hour. Thats all good. But when it takes me a small amount of time to design a building thats costs a great deal to build or holds millions of dollars worth of equipment how do you justify, or do you, charging a fee for your servicesbased on what you provided and the liability you assume, not just on the time it takes to do it? Thank you.

 

[dik]

You don't! When I estimate a project, I consider the estimated time, the estimated number of drawings and the estimated value and prepare a fee based on this... I also factor in how 'hungry' I am at the time and if I really want/need the project. This latter is based on my reluctance to have my client try a different consultant <G>.

Dik

 

[GregLocock]

Why not break out the bil into two parts - the hourly part and the liability part.

Cheers

Greg Locock

Please see FAQ731-376 for tips on how to make the best use of Eng-Tips.

 

[DonPhillips]

I write my contracts to state the limit of my liability is the fee paid for the service.

Don Phillips

http://worthingtonengineering.com

 

[dik]

Don... in some jurisdictions that my not hold water...

Dik

 

[DonPhillips]

I am not saying the client would not have a negligence claim in excess of the contract amount, but an error or ommission could be limited to the value of the contract.

Don Phillips

http://worthingtonengineering.com

 

[ashleyassociates]

Dont be scared to ask for a sum...You are providing a service not just an hourly amount. I am under the impression that you probably will not starve to death if your customer says no.....so....dont be scared, your time/ideology/drawings/seal is worth an amount....tell them...I promise less than 20% say no, and when they do, they wind up coming back begging again when they have been told no!!!!

 

[lz5pl]

Do you have not some kind of liability insurance in USA? Here in Bulgaria it is mandatory and differs according to the project (not design contract) price.