Overseas rates 1

[Mililani]

I am a self employed engineer, I install, checkout and start up equipment.

There are two companies I would like to try doing business with, one in the UK and one in France.

THis is the logic I use to set my rate in the USA. An american company pays let's say $70,000 to $80,000 for an experienced engineer which works out to $40/hr, plus benifits is $50/hr. I charge $60 to $65 on an hourly basis, no OT premium.

What rate would be competitive so a french or British company would hire me.

Thanks

Mililani

 

[sc]

G'day Miliani,

From what you note about setting your rates, you may need to consider increasing your rates.

How do you include payment for times when you are not able to work (holidays & sick days)?

What about; vehicle running costs, stationery, telephones, internet, insurances, profit, etc?

I know that with all of this added in my rate rises from $40 to $80.

You also need to conside travel, accomodation, meals, etc. I pressume you charge these at cost + a %.

Beware of looking for a competitive rate as you still need to live.


Regards

SC

 

[Mililani]

I work on projects where I can usually bill 55 to 80 hours a week. I charge expenses at cost. This allows me to be idle about half the year.

But this year I lost alot of business when a small firm hired an employee. Once an empolyee is hired the expenses of the first 40 hours is a sunk cost, use it or lose it. It makes me quite more expenseive.

I like repeat business with the same firm. It takes awhile to estabish yourself with a new firm. IF I am too expensive the choice will be to hire full time employees.

How would this work in Australia? What could I charge and still not have my customer choose to hire a full time employee?

 

[RDK]

Canadian rate are usually 2 to 2.5 times salary cost. Salary cost is salary taxes vacation and sick pay and benefits. Often as much as 30% over bare salary.

OT is usually at a slightly lower multiplier since the employee’s overhead is captured on the base part. Often there is no charge out difference between regular and OT consulting work.

Fully experienced senior engineers are 80-100K CDN a year or consulting charge out is 80-125 CDN per hour.

Personally I like to charge either a job rate or a daily rate. It makes the paperwork much easier. I can do this because I tend to only work on one project at a time.

See also the guide to hiring a consulting engineer and links to Canadian association salary surveys at

http://www.apegm.mb.ca

Rick Kitson MBA P.Eng

Construction Project Management
From conception to completion

http://www.kitsonengineering.com

 

[HEC]

Mililani
When considering rates as SC states you need to include for all your overheads. If youo compare your rates with an equivalent full time salary, the true cost to a company will be the annual salary plus "on costs". These costs are work cover superannuation etc, generally these come to an approximate figure of 30 - 40% of the annual salary. True during a project the billable hours are generally in excess of 40 hours per week. This will skew the calculation based on a staff or annual salary comparison.
Another point to keep in mind is that as a contractor/ consultant you aer savin the company hire/fire costs when they employ you. It is true that youo need to be competative against a full time employee, but you are there to serve short term or peak needs. The situation in Australia is becomming quite interesting with demand for profesionals increasing and rates remaining the same. This must change. There is a whole other discussion comparing hourly rates for plumbers, lawyers, accountants and engineers, but I will not go there!

Mark Hutton
hutton4eng@picknowl.com.au

 

[GregLocock]

In Oz, automotive, for short term (80 hour) contracts we'll pay up to $200 per hour for the right guy, but more typical would be $80-120. For longer term contracts you are hard pushed to get much more than the equivalent hourly rate of a top of grade permie, call it $55 per hour.

They pay more for mining engineers.

Cheers

Greg Locock

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

 

[Mililani]

USD 70 or so should be competitive in canada or Australia. Since the 2 companies I would like to work for are in the UK and france I wonder what would be competitive?

The work I do is international but I have never worked directly for a european company. The USD is down so maybe rates will get me extra work.

I know I probably cant work in the EU but these companies probably have work in latin America, the US and canada.