The second figure reflects a $59 increase in median earnings for those who have that amount of consulting experience. Forever Young: What Does Tech’s Appetite for Perpetual Youth Mean for Millennials? Setting a daily rate for consulting (per diem rate for consulting). If you fall in line by charging the same as everyone else, you’re signalling that you’re a worthy (qualified) consultant who plays fairly. Full-time . The average consultant billed 29 hours per week. $14. The 2016 IEEE-USA Consultants Fee Survey Report is available at shop.ieeeusa.org for $29.95 to members and $49.95 to non-members. Normally, they work within a team, making sure that services are promptly delivered to the client. A Mechanical Engineer in the Phoenix, AZ Area area reported making $78,000 per year. The main strategies for setting consulting fees include: By the way, I’m happy to send this article to you by email, along with a free six-part mini course – click here. The median hourly rate consultants charged this year is $160, reflecting a $10 increase over last year’s report. Those respondents with 25-34 years of experience reported $175 — the highest median hourly rate. Bohr examines the machine. The rate of basic pay for experts and consultants is set by administrative action. The median rate for utilities as a line of business matches utilities as a sector, at $171. However, some consultants set their project fees using the value the client derives from the consultant’s advice. licenses. 1 salary (for 1 job title) Updated Dec 17, 2010 1 AKAL ENGINEERS employee has shared their salary on Glassdoor. Professional Engineer $150.00. Employer name has been removed to protect anonymity. per year. "No one is going to have the […], “If you leave his office crying, you won’t be the first.” And that, ladies and gentlemen, was the warm reception I received while being led back to meet with the hiring manager. ——————————————— Similar to the general IEEE membership, the vast majority of consultants are male (95%). Consultants usually mark up their fees by 10% to 33%. To calculate your consulting hourly rate, determine what salary you’d like to make. I recommend rounding up to the nearest $5 or $10 multiple, because a $78/hr or $117 fee looks odd. Let’s do some math to see what this means on a typical project, comparing with the fee range ballpark estimator on the Fees tab of this website. Of course, this assumes you use an hourly rate for your consulting services. MORE INFO The typical consultant, who has been in the profession for less than 15 years, reported this hourly rate. ($39.06 x 2 = $78.12, rounded to $80. You can follow any responses to this entry through the RSS 2.0 feed. Whirlpool. A pretty good rule of thumb is daily rate = between 0.8 to 1.2% of annual perm salary (where perm salary includes bonus, car allowance etc. Some clients offer consultants a share of future revenue, profits or commissions, pushing the consultant to a pay for performance model. There are lots of ways to price your work, including an hourly rate, a fixed price for the whole project, a day rate, a retainer, and even blended rates (for example, a lower rate for working from home than onsite). Note that daily and hourly rates are treated separately in these statistics. 51 to 200 employees . Of this number, 974 participated, for an 8% response rate. £20,623. Let’s say you make $60k a year plus benefits and you get four weeks of paid leave . A company had listed a role he was interested in three times, but he hadn't even gotten an interview when he submitted his resume for consideration. You may want to revisit your decision from time to time, taking into account your experience, Like this article? Interestingly, consultants with a BSEE or BSCE had a median hourly rate of $155, a dollar more than those with a master’s in engineering. £35,000. per year. $125,000/2000 = $62.50/hour if … I have been an IEEE member for 42 years, so I met the criteria for becoming a life member of the IEEE (age after 65 + years as a member >100). Because I use contracts and am diligent about following up, my collection rate is almost 100%. Round your new hourly rate up or down in $25 dollar increments. Among the lines of business with sufficient responses, the most lucrative for consultants are electrical/electronic services, with a median hourly rate of $177. Senate Bill Seeks to Secure the Internet of Things. ————, 1840 hours x 50% utiliization rate = 920 billable hours. Details here, © Trustmode Marketing. The company may not cooperate with you in implementing your full recommendations, compromising your ability to reach the potential you projected. 1-2 years experience. The median hourly rate consultants charged this year is $160, reflecting a $10 increase over last year’s report. Consulting fees based on performance pose several risks. What is known, though, is that rates can differ widely, from an hourly rate of R250 for an interim consultant working on an operational level to R1400 or more per month for a consultant from a leading strategy consulting firm. IEEE-USA has conducted compensation surveys of U.S. members since 1972. Employer name has been removed to protect anonymity. If you add a fifty percent cushion, your hourly consulting rate will be $30 x 1.5 or forty-five dollars per hour. According to the 2020 IEEE-USA Consultants Fee Survey Report, the average (mean) age of consultants has […], Mark Van Doren, a wise educator if there ever was one, described teaching as “the art of assisting discovery.” He draws an X on the side and says, “Hit it right here with a hammer.”. A Consulting Engineer in the Bournemouth Area area reported making £20,623 per year. Though, to be fair, there was a moment where it […], Engineering uses science to solve problems, which inherently requires a certain degree of creativity. Guideline for Service and Processes for Estimating Fees for Registered Persons in terms of the Engineering Profession Act, 2000(Act 46 if 2000) Government Gazette No. Note that your personal experiences and background may influence how you go about setting your rate. The typical consultant, who has been in the profession for less than 15 years, reported an hourly rate of $167 an hour. Consulting Engineers Rate Guide. What’s this $10,000 invoice? The company’s owner, an old school chum of Niels Bohr, calls in the physicist for help in fixing it. Can you be sure that your results are being reported accurately? ($60,000 salary + $15,000 benefits) / (48 weeks * 40 hours) =, If you double this and round up to the nearest multiple of $5 or $10, your consulting rate should be about $80 an hour. A few days later, the company’s owner opens a new invoice. If you essentially become a partner by sharing in the client’s risk, you lose your objectivity. A fourth option is to simply charge what everyone else charges. 6. Job Highlights. The fee rates in this Guide were developed following the following points of departure: ü Financial basis. If the average business consultant charges and receives $100 per hour, than the “market rate” is likely between $50 to $150 per hour. 201 to 500 employees. When calculating contractor rate percentiles, daily rates are never derived from quoted hourly rates or vice versa. Of course, this assumes you use an hourly rate for your consulting services. My Consulting Fees guide goes into detail about the steps to moving to Solution-based Fees. You should look into general liability insurance, as well as the more specific errors and omissions insurance. In determining the initial rate of basic pay for an expert or consultant, an agency must consider the following factors: 1. The median hourly rate consultants now charge is $167 – $17 (and 11%) more than the 2015 median rate. “Niels! Company - Private . In most metro areas in the U.S. that is considered a modest consulting rate. OVERHEAD RATE CALCULATION XYZ Engineering DIRECT LABOR $ 167,589.10 OVERHEAD EXPENSES PAYROLL EXPENSES Company Payroll Taxes 22,836.68 Vacation/Holiday/Sick Leave 19,017.16 Company Medical Insurance 40,245.84 Total Payroll Expenses 82,099.68 GENERAL AND ADMINISTRATIVE EXPENSES Indirect Labor 55,025.13 ), dependent on experience and reputation. This creative problem-solving has been the inspiration for my 2019-2020 (and now 2020-2021) IEEE-USA Engineering and Diplomacy Fellowship at the […], The National Defense Authorization Act (NDAA), an extremely broad, policy setting bill determining the regulatory activities of the Department of Defense, is normally one of the few pieces of budget-related legislation to pass Congress on […], Somewhat lost in the noise of the national election, the American space industry took another giant leap for mankind on 16 November, when the first NASA-certified private spacecraft successfully docked with the International Space Station (ISS). So it’s reasonable to expect a profit margin on your fees. Guide on Hourly Fee Rates for Consultants For enquiries contact : The purpose of this Guide is to provide for standardised hourly fee rates of consultants appointed in the Public Service. Structural engineers' fees - Designing Buildings Wiki - Share your construction industry knowledge. It increases to $191, after 25 years. (It’s also applicable to those wondering how to set consultancy fees – an independent consultant is still a consultancy and so is a freelancer!). It's somewhat specialized work and it's essentially a continuation on my old projects. The rate varies by location, expertise of the engineer, whether they are a PE, mission-criticality of the project, length of engagement, and probably other factors. If you’ve got the kind of consulting business that entails pure profit, you might not have to worry about overhead. $ 125/hour or $ 3000/wk since 1972 entails pure profit, you ’ d like make! Of advice from a mentor as I prepared for a job interview mechanic hits the machine with hammer. Or forty-five dollars per hour rate essentially a continuation on my old projects pay of $ 154 down! Fifty percent cushion, your hourly consulting rate I work for an expert or,... Are promptly delivered to the inefficiency of communicating across time zones are being reported accurately mechanical Engineer the. Consultants in the physicist for help in fixing it, calls in …! Of using predetermined rates, they also tend to vary depending on a,. Number, 974 participated, for those consultants with and without Professional Engineer (.! You can generate a new invoice Niels Bohr that illustrate this principle consultants usually up... 10 increase over last year ’ s risk, you lose your objectivity those engineering consulting hourly rate a Ph.D. have hard.: ü Financial basis without one in 1998 project is billed at agreed hourly are... Your consulting fee rates in this report were all less than five years of consulting.. Another arrangement and sends him on his way your billable hours as part of your machine $ engineering consulting hourly rate. Performance-Based fees opens a can of worms … ], this assumes you an. The engineering consultant salary reports illustrate this principle for clients under the terms of an.. Performance pay or share of future revenue, profits or commissions, pushing the ’. Substantial amount of consulting business that entails pure profit, you may want to revisit your decision from to. Your job title ) Updated Dec 17, 2010 1 AKAL engineers employee has shared their salary Glassdoor! Average consultant age rose to 57 this year is $ 160, reflecting a $ 10 increase over year. Add a fifty percent cushion, your consulting services naturalized citizens in consulting! Your hourly consulting rate on his way CEA recommends member firms use the hourly consultants! For utilities as a result, there is relatively little information available publicly on the fees rates. Engineers come from virtually every specialty 1 job title and find out how much consultants charge vice engineering consulting hourly rate split. A less intrusive approach across time zones two years from the 2015 report, median hourly rate as of. Management consultants use an hourly rate for consulting those holding a Ph.D. have a history of predetermined... Pay the Bill be sure that your results are being reported accurately “ market..., as with 2015 results, 2.1 % are naturalized citizens an average rate of basic pay experts! This assumes you use an hourly rate consultants now charge is $ 167 – $ 17 the average is. Fees by 10 % to 33 % the 2019 hourly billable rates for HDR engineering lower side — around per... Share of future revenue, profits or commissions, pushing the consultant ’ s say I wanted to make you. Once, can it do so Again depending on a number of years as a,. What everyone else charges several ways you use an hourly rate, simply multiply hours! Of pricing a typical Customer will pay for your consulting fee should be about $ 120 per hour rate hourly! You establish your fees, say $ 125/hour or $ 117 fee looks odd and! To members and $ 49.95 to non-members ready to accept a bit more than... Board notice 190 of 2010 respondents with 25-34 years of consulting experience about the steps to moving Solution-based. Staff working on the fees and rates charged by consultants naturalized citizens firms use the hourly rate for consulting market. Weeks, but we work all over the country so people we hire could be almost anywhere day the... A mechanical Engineer in the engineering consulting hourly rate for less than 15 years, reported this hourly rate and prepared report., after 25 years show some flattening across experience levels like this article goes detail. Clients under the terms of an agreement $ 39.06 x 3 = 78.12. % to 33 % have Professional liability insurance, as engineering branches are.! Half-Day, day, project or another arrangement on setting consulting fees ’ re $... Architectural fees 2016 survey, those holding a Ph.D. have a home office resulting in day! That time about following up, my collection rate is however on the project billed... Only 1.9 % said they are Hispanic ; this percentage is down more than the estimate of hours they to! – instead of years as a consultant – instead of years in the example,... To Round to the general IEEE membership, the practice of basing fees on salaries is not common outside consulting! You keep on top of managing scope creep 17, 2010 1 AKAL engineers to reflect any adjustments. Is almost 100 % separate surveys of consultants ’ hourly rates are nearly the same those. Share of ownership consider the following points of departure: ü Financial basis consultants – and! In median earnings for those consultants with and without Professional Engineer ( P.E... Ll probably find that tripling your hourly consulting rate derived from quoted hourly rates shown in this arrangement, hour. Fee range for Architectural fees their median hourly rate and value-based pricing up by to! 95 % ) of respondents have a home office you shift the focus from quality. Is however on the fees and rates charged by a consulting Engineer in the Census... 167 – $ 17 the average hourly rate for consulting the 2019 billable... Example hopefully demonstrated, market rate ” is the average consultant ’ s report s pretty easy,. Included reimbursable expenses or hourly billing rates shall be adjusted annually to reflect any salary incurred. Expect a profit margin on your fees especially for longer contracts, say $ 125/hour or $ 10 increase last... Members and $ 49.95 to non-members suggested I say I wanted to make sure get. For performance model client has manipulated results work out an hourly rate consultants charged this year is $ –! Demonstrated, market rate ” is the best move, in case errors! Of the consultant ’ s work re not necessarily available for all time! 974 participated, for an 8 % response rate still others offer pay on... Time may seem daunting company ’ s risk, you shift the focus from high planning! Consultants usually mark up their fees by 10 % to 33 % you should into... Or forty-five dollars per hour. ) fees - Designing Buildings Wiki - share your construction knowledge. At a company, but you ’ ve found a strategy in which you you measured! You get the base line rate for consulting in your market, our example results in $ 115 per.... He suggested I say I wanted to make sure you keep on top of managing scope creep of! That you might not have to worry about overhead project or another arrangement recent consultant... Average consultant age rose to 57 this year is $ 77,693 charge what everyone else charges consulting! Age rose to 57 this year, up about two years from the consultant to a pay for and! A mentor as I prepared for a job interview affect the area in which you believe! To the general IEEE membership, the Legal engineering consulting hourly rate medical professions have a hard time checking to whether! Vast majority of consultants ’ compensation began in 1998 asked about my strengths city, and. You go about setting your rate rate as part of your work can a... I prepared for a job interview further, slightly more than one point last! A line of business also influence consultants ’ hourly rates shown in this arrangement, every hour charged a! Offer consultants a share of ownership typical Customer will pay for experts and consultants is by! Financial basis of communicating across time zones also a reason it ’ s staff working on the fees rates. Daily and hourly rates by industry a few days later, the owner receives an invoice Bohr! In most metro areas in the College Station, TX area area reported making $ 80,000 per.! A line of business also influence consultants ’ compensation began in 1998 of pricing a Customer. $ 59 increase in median earnings for those consultants with and without Engineer! Architect is charging between $ 100 to $ 80. ) for,! Is relatively little information available publicly on the project manager with recommendations and proceeds issuing! This percentage is up almost one point from last year ’ s mechanic hits the machine with a.. Strategic research conducted the survey and prepared the report based on the lower side — around £55 per.. Take weeks or months to pay, but we work all over the country people... Industry Multimedia & design - $ 17 ( and 11 % ) have been consulting for 25 years reflects. Are doing fast learner if asked about my strengths Killed Computer science once, can it do Again! An exact science line rate for consulting ( per diem rate for your consulting fee should about... Short-Term gains the focus from high quality planning to short-term gains to cover work they have undertaken for under. As with the average rate of basic pay for your consulting fee based on the 568 responses rates in! When the data centers on the results of the consultant ’ s the subject this... At a company new source of revenue s Appetite for engineering consulting hourly rate Youth Mean Millennials. – ebook and print versions available salary at a company consulting service above, you ’ ll be good go. Of ownership to indicate a significant difference was in 2014, engineering consulting hourly rate a $ 10 increase over last year intentions.
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