CHARGING FOR CIVIL

ENGINEERING
SERVICES

4.1- General
Charges for engineering services are usually
computed using one of six method.

Salary Cost Times Multiplier plus Direct

Non-Salary Expense( Reimbursable )
Hourly Billing Rates plus Reimbursable
Per diem
Cost plus Fixed Fee
Fixed Price
Percentage Construction Cost

4.2- Salary Cost Times

Multiplier Plus Direct NonSalary Expense
Compensation on the basis of the
salary cost times an agreed
multiplier is a frequently used
method of determining charges for
engineering services. With this
method, charges for engineering
services are based mainly on direct
salaries.

4.2- Salary Cost Times

Multiplier Plus Direct NonSalary Expense
Salary Cost
Defined as direct salaries plus employee
benefits and includes salaries for partners or
principals and for technical professional,
administrative and clerical staff directly.
Chargeable to the project: sick leave, vacation,
holiday and incentive pay; unemployment and
other payroll taxes, and the contributions for
social security, workers compensation insurance
retirement, medical, and other group benefits.

4.2- Salary Cost Times

Multiplier Plus Direct NonSalary Expense
Multiplier
Which is applied to salary cost is a factor that
compensates the civil Engineer for overhead plus a
reasonable margin for contingencies, interest or
invested capital readiness to serve, and profit.
The size of the multiplier will vary with the type of
service, the nature and experience of the civil
engineering firm, and the geographic area in which
its office is located. The average multiplier should
be between 2.5-3 times the average salary cost.

4.2- Salary Cost Times

Multiplier Plus Direct NonSalary Expense
Direct Non-Salary Expenses
Usually incurred in engineering engagements

Living and Traveling Expenses

Identifiable Communication Expenses
Expenses for Services Equipment
Identifiable Drafting Supplies, Stenographic
Supplies and Reproduction Works
Expenses for Unusual Insurance and Specialized
Health and Safety Programs and for Special
Clothing for Projects

4.2- Salary Cost Times

Multiplier Plus Direct NonSalary
Expense
Overhead
comprises a major portion or the compensation
generated by the multiplier on salary cost.

Provisions for Office Expenses

Taxes and Insurance
Library and Periodical Expenses
Executive, Administrative. Accounting, Legal,
Stenographic and Clerical Salaries and Expenses
Business Development Expenses
Provision for Loss of Productive Time of Technical
Employees
Costs of Acquiring and Maintaining Computers,
Development of Software, and Training Staff

4.2- Salary Cost Times

Multiplier Plus Direct NonSalary Expense
Accounting Records
The Civil Engineer who performs services
under a salary cost times multiplier
agreement or other cost-based agreement
must provide the accounting necessary to
segregate and record the appropriate
expenditure.

4.3- Hourly Billing Rates

The hourly billing rate method is very
similar to the salary cost times multiplier
method in that the hourly billing rate
includes all direct personnel, overhead
and profit.

4.4- Per Diem

The term per diem normally refers
to an eight-hour day. Direct personal
services are frequently charged on a per
diem basis. This basis is particularly
suited to expert witness or other legal
type services and to other short-term
engagements
involving
intermittent
personal services

 Prepared by:
Abaya, Siva Das
Aldunar, Jericho
Allingag, Lord Gin
Amparo, Mary Jane
Bascuna, John Cedrick
Batutay, Bon Jovi
Calma, Elleniza Joice
Casalin, Ibrahim