Just starting out in consulting...how to price this job? (Florida) 10

[Boozie]

Hello,

I am a PE in FL with 8 years of experience in design. Job is in FL.

A colleague recently reached out to me and asked if I am interested in consulting on a small commercial project. They want a two-tenant 9,000 SF space, one story. I am assuming CMU walls with perimeter wall footings, steel joists with metal deck, and a slab on grade unless they tells me otherwise.

I have the experience to design this when I was working with an AE firm, but I currently do not have an LLC, do not have any laptop or software, do not have insurance set up, etc. I'll be starting out fresh.

I'm just looking for next steps and advice on how much to bill for my services, and how to set myself up for success.

1. Do I need to establish myself as an LLC in order to consult on the side and make money? What other options do I have to legally accept money for work? What are the steps, tricks, and advice you can give me for going down this path?

2. Do most consulting engineers buy an appropriate laptop or desktop, and then buy whatever software they need? Are there any tips to avoid paying the huge costs for the software?

3. Regarding billing, I've seen a lot of advice on this sub...typically billed at an hourly rate, or 1-2% of the total construction costs. For this type of project, based on hourly rates, this is what I am thinking to charge:

Hourly rate: $150/hour

Drafting
3 sheets for general notes and specifications: 8 hours per sheet, 24 total
2 sheets for plans: foundation, roof framing: 16 hours per sheet, 32 total
2 sheets for elevations: 16 hours per sheet, 32 total
2 sheets for sections: 16 hours per sheet, 32 total
2 sheets for fnd/roof framing details: 16 hours per sheet, 32 total

Total drafting hours = 152 hours

Engineering
Wind Design: 16 hours
Foundation Design: 16 hours
Column and Base Plate Design: 16 hours
Wall Design: 16 hours
Joist Design: 8 hours
Metal Deck Design: 8 hours
Misc. Features design: 12 hours

Total Design Hours: 92 hours

Total hours: 244, round to 250
Total cost: 250 hours * $150 = $37,500

Just wanted to determine whether that's a reasonable price to ask. I don't have the construction cost now, but I will try to do the 1-2% of the total cost and compare.

 

[phamENG]

JP - you might want to check your construction costs. That's a decent price for 2018. I doubt that would be built for less than $325/sf now, though local markets do vary.

 

[IceNine]

What happens if I'm halfway through drafting and design and reach a point where I feel I'm in over my head?

This is a very straightforward commercial project. If you feel there's a chance you might be in over your head, you probably are.

 

[Eng16080]

Boozie, Not to discount how you feel, but I don't understand why you think you're in over your head considering that:

I have the experience to design this when I was working with an AE firm, but I currently do not have an LLC, do not have any laptop or software, do not have insurance set up, etc. I'll be starting out fresh.

If you'll be stamping the plans, then you should get insurance. You'll also need some minimal software. Aside from that, in my experience, there's little difference in how you'll be designing the project now sitting at your own computer at home versus sitting in an office cube at the AE firm. The structural engineering is the hard part. The other stuff isn't.

Now, if at the AE firm you were really relying on others to get you through the design and there were aspects of the design which you had no idea how to solve without others, then perhaps you're right, but that doesn't sound like the case.

 

[bigmig]

The advice on here is more amusing than the original post.
If you don't know how to do it, hire someeone who does.

This applies to:

1. accounting
2. business setup
3. contract writing and reviewing with your lawyer
4. your insurance rep

If you have to count pebbles, that is a clue you are in over your head.
Some basic business classes would go a long ways in engineering curriculumn.
So would field experience. Many of us are too 'smart' for our own good.