|
<br />CONSULTING ENGINEERING
<br />
<br />25
<br />
<br />draftsmen, stenographers, surveymen, clerks, etc., for time directly chargeable
<br />to the projects; plus unemployment, excise, and payroll taxes; and contributions
<br />for social security, employment compensation insurance, retirement, medical,
<br />and insurance benefits.
<br />Salaries or imputed salaries of partners or principals, to the extent that they
<br />perform technical or advisory services directly applicable to the project, are to he
<br />added to salary cost.
<br />Since, in this basis of payment, the salaries are the most important element of
<br />cost, it is advisable for the engineer to reach an agreement with the owner on the
<br />salary ranges for each classification of labor chargeable. In so doing he
<br />. minimizes the possibility of disputes during audits of his accounts.
<br />The multiplier which is applied to salary cost is a factor which compensates
<br />the Consulting Engineer for overhead, as hereinafter defined, plus a reasonable
<br />margin for contingencies, interest on invested capital, readiness to serve, and
<br />profit. The size of the multiplier will vary with the types of work, the organiza-
<br />tion and experience of the consulting engineering firm, and the geographic area
<br />in which its office is located. For conditions in the United States, the multiplier
<br />averages 2.4 times salary cost.
<br />A higher multiplier is ordinarily necessary on projects of short duration or
<br />small size. The rate will ordinarily be higher also on consulting engagements for
<br />providing recommendations based primarily on experience or special know-
<br />ledge, or for expert testimony in legal proceedings. It will also vary upward with
<br />the experience and special capabilities of the consulting engineering firm. For
<br />some services, however, the rate averages 2,3 times salary cost, as in the case of
<br />a locally employed staff of the Consulting Engineer, when engaged primarily in
<br />fieldwork such as inspection or resident engineering service during construction.
<br />Direct non-salary expenses usually incurred in such engagements may include
<br />the following:
<br />
<br />a. Living and traveling expenses of employees, partners, and principals when
<br />away from the home office on business connected with the project.
<br />b. Identifiable communication expense, such as long-distance telephone,
<br />telegraph, cable, express charges, and postage, other than for general
<br />corres pondence.
<br />c. Services directly applicable to the work, such as special legal and account-
<br />ing expenses, computer rental and programming costs, special consultants,
<br />borings, laboratory charges, commercial printing and binding, and similar
<br />costs that are not applicable to general overhead.
<br />d. Identifiable drafting supplies and stenographic supplies and expenses
<br />charged to the Client's work, as distinguished from such supplies and
<br />expenses applicable to two or more projects.
<br />e. Identifiable reproduction costs applicable to the work, such as blue-
<br />printing, photostating, mimeographing, printing, etc.
<br />
|