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24 CONSULTING ENGINEERING the standing of the individual. Similarly, per diem rates for principal engineers are on the order of $240 per day and can be expected to vary for the same reasons. For all staff assistance, the rate averages 2.4 times the "salary cost" as defined subsequently. 2. Retainer The employment of engineers on a retainer basis is a common practice of Clients who wish to be assured of always having available in the future, the services of a certain individual engineer or organization. This method is used in cases of protracted litigation or for work over the years, when the calls on the Engineer may be intermittent. It is also used in the development of undertakings for which the services of an engineering specialist are not required on a full-time basis. On large projects, the Client may also employ on a retainer basis, for maintenance Or additions, the Engineers who prepared the original plans and specifications. The amount of the retainer varies with the character and value of the services to the Client and with the reputation and standing of the Engineer in his profes- sion. The terms of agreements for services on a retainer basis vary widely. Com- pensation may be based on a fixed sum, paid monthly, or on some other mutually agreeable basis, with per diem or hourly rates in addition for time spent at the request of the Client. In any case, the same principles, as explained previously for per diem or hourly charges, apply under retainer contracts. 3. Salary Cost Times a Multiplier, Plus Direct Non-Salary Expense For many projects it is not possible to state accurately the scope of work at the time the Engineer is retained for the project. The preliminary engineering ser- vices, such as surveys, investigations, preparation of budget estimates, process studies, development of alternate layout plans, and other services needed to establish the final design, are usually so indeterminate in scope that neither a lump-sum nor a fixed percentage of construction cost would be an equitable basis .of compensation. Furthermore, on many projects, during the design phase, it becomes necessary to undertake additional experimental or investigative work, the results of which may further alter the scope of the project. Compensation for services on the basis ofthe salary cost of the work, times an agreed multiplier, is a satisfactory and equitable method for such assignments, when the time required is unduly difficult to predetermine. Direct non-salary expenses are ordinarily considered as a separate item for reimbursement, usually with a nominal sur- charge. Salary cost' is defined as the cost of salaries (including sick leave, vacation, holiday and incentive pay applicable thereto) of engineers, technicians, *Salary cost, as defined, ranged (in 1973) between 125% and 135% of direct salaries. See the 1973 ASCE Salary Survey.