Project Engineer billing rates and multipliers

[cjd97]

I am curious as to what kind of rates and multipliers people have been seeing. I'm particularly interested in the midwest. I remember a time when 3.0 was acceptable but now it seems companies are squeezing to 3.5 to 4.0 minimum. So at $100 an hour, should a Project Engineer with a PE be making $33 an hour or something more like $28? Just an example of course.

Please comment, it would be greatly appreciated.

 

[bridgebuster]

3.5? Even 3.0 is unusual for DOT work in NYC.

 

[cjd97]

DOT work is normally 2.8 or so in IL. What are companies using for your overall rate though?

 

[atlas06]

4.0 is a dream around here, never heard of such a number.
2.5 is average around the DC area for government work or large firms fees.
Small firms go as low as 1.8 in private sector.
Clients are getting savy, they don't want to pay for all the details in your database.

 

[ee2002]

I work for a small firm that uses 3.0, but they will go higher if they can.

 

[cousink]

I used to work for a branch of a large, national corporation in one of the hottest development markets in the USA, and the multipliers for the project engineers in that office were between 3.2 and 3.6. This was all for study, modeling, and design work on behalf of area public water utilities trying to keep up with rampant land development.

 

[cousink]

By the way, I was working for an out-of-state firm trying to keep its foot in the door of the Inland Empire of Southern California.

 

[dcasto]

In the Gulf Coast the multiplier ranged from 1.25 to 2.0. The range was set by factors such as on the low end, the company recieving the services supplied the engineer with a desk, computer, parking, and materials. On the upper end, the engineering supplied all those things. The other factor was things like health , E&O, and liability insurance. Of course mandated taxes like unemployment, SS, Medicare were always there.

In the Chicago area, it was common practise to have the multiplier and get a bonus based on some simple, stupid measures. It we even finish the project we get 5%, bet the 14 year deadline and we get an additional 5%. I looked at those as just a way of hiding a markup to a 2.2 instaed of a 2.0

 

[UDP10]

I work for a MEP consulting firm in the midwest. Our multiplier is between 2.5 and 3.0 bill rate vs. WAGE rate (not including company portion of 401K, insurance, etc).

 

[jimaitken]

Southeastern US

DOT work here is about 2.86. Other work is around 3.0. This is federally audited and includes a 10% min profit (max for DOT work)

Multiplier is a 2 edged sword. As mulitplier increases your burn rate increases and gives you less time to do the work as the engineer, but your company makes more money for your time at that multiplier and will increase revenue.

It sounds like you are looking at the rate schedule and where you fall on it and how much the company is making off your hard work.

 

[cjd97]

jimaitken,

Pretty much. I'm actually looking to change jobs. Just trying to figure out a number to shoot for.

 

[SylvestreW]

wow. interesting to see it's quite constant across the board.
I know here in Ontario the bigwigs get around 2.5-3 and the juniors (who do most of the number crunching) are around 3.0-3.5.

 

[RDK]

The Manitoba association publishes a guide to the engagement of a consulting engineer.

They recommend 2 to 2.5 times full salary cost (base salary plus vacation pay, benefits etc). The 2.5 number is short term work and the 2.0 number is for long term engagements.

See

http://www.apegm.mb.ca

and follow the link. I think its under “Information for the Public”


Rick Kitson MBA P.Eng

Construction Project Management
From conception to completion

http://www.kitsonengineering.com

 

[IRstuff]

Aerospace routinely has wrap rates >3

TTFN

 

[TDAA]

3 (from base salary) is pretty common, at least for private civil consulting work. The one thing to consider is the expence multiplier hat the company has (likely not known to you).

This number can vary widely based on utilization, benifits paid for with company funds (vacation, 401K, etc.), company functions such as picnics, and the amount paid for offices, utilities, size of non-billable staff, etc. If this number gets too high, then they may need a higher multiplier.

Also, keep in mind that your position, and its billable rate, have a salary range that it can support. If you are hired on at the top, you may need a promotion to get a raise.

 

[RDK]

Also remember that sometimes you have to take a lower multiplier to get the job. Just be careful that you are not crossing any ethical boundaries in doing this.

However a multiplier of 1.0 is better than a multiplier of 0.0


Rick Kitson MBA P.Eng

Construction Project Management
From conception to completion

http://www.kitsonengineering.com