Professional Documents
Culture Documents
Consultation Research Investigations and Reports
Consultation Research Investigations and Reports
Consultation Research Investigations and Reports
There are five different methods which are used for charging
engineering consultant services:
• Salary cost times multiplier, plus direct non-salary expense
(multiplier)
• Hourly billing rate plus reimbursable expenses and a “not to
exceed” amount for specified services (hourly)
• Per diem (fixed charge per day)
• Cost plus fixed fee
• Lump sum or fixed price
SALARY COST TIMES MULTIPLIER PLUS DIRECT NON-
SALARY EXPENSE (MULTIPLIER)
It is dependent on the cost of consultants who carry out the service and it
is specifically suitable tasks in which the extent or range of the
engineering services is not clearly outlined.
Disregard of the charging method utilized, it is more convenient to outline
the project scope adequately because it will lead to achieve satisfactory
result and the end of the service and reduced possible disputes between
the owner and engineering consultants.
There are specific project conditions for which multiplier method for
charging consultant services is suitable. For example, if the scope of
project is not outlined properly, the extend of the project is defined
adequately, or substantially complex project.
HOURLY BILLING RATE PLUS REIMBURSABLE EXPENSES
AND A “NOT TO EXCEED” AMOUNT FOR SPECIFIED
SERVICES (HOURLY)
The per diem term is referred to an eight hour per day. The cost of
consultants who conduct the engineering service is the base for the
per diem approach as it is the case in the previous two methods.
Similar to the per diem, hourly and multiplier method, cost plus
fixed fee is dependent on the cost of consultants.
Unlike other four methods discussed above, lump sum or fixed price
approach is based on completion of the project and the extent or range of
the project need to be defined adequately. So, the scope of the project
should be accepted and agreed upon by both consultants and project
owner.