T&M (aka T&E) put(s) the risk on the client, and so is not often a winning approach for price shoppers.
I should add that if your hourly rates realistically cover your all your costs - including paying yourself for your time plus a fair profit margin - there is nothing inherently wrong with working T&M.?ÿ ?ÿ?ÿ
The perspective client is shopping around for the lowest cost.?ÿ Don't go down that road.?ÿ Once you do, there's no way off it.?ÿ ?ÿStick to your original estimate and if the perspective client doesn't like it then what have you lost??ÿ In forty plus years of surveying I have never worked in a cuttover that was easy.?ÿ?ÿ
Good luck and remember you are the professional not the client.
Legitimate question here:
Why is cost of this an issue?
Plumbers bill at a rate they hold, electricians too. Varies from location and unions too, and flat rates.
And mechanics.
Doctors are held by federal And state laws for Medicare and Medicaid prices?ÿ and also have set standardized rates that also get applied.
Lawyers don't negotiate their hourly rates, they just bill everything at 0.1hr increments.
We bill out to our clients for survey at around?ÿ 95/hr for survey techs and?ÿ 150/Surveyors and project management.
Was similar at another company I started with several years ago.
The estimated cost is based on the rates charged, so using T&M seems like it's the only option, but the NTE idea evolved to the best of my knowledge from federal jobs where Contractors were raping and pillaging so the FED said nope?ÿ and then we got what have there.?ÿ?ÿ
Negotiable cost for a survey seems like it's solely based upon the time and effort it will take versus the misinformation of what people have been misguided into believing what a survey Should cost.
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"I bid 'em happy-happy.?ÿ Happy if I get 'em.?ÿ Happy if I don't."?ÿ I think that's good advice.
Agreed.
@murphy?ÿ
"The client appears to be telling you that he doesn't care about quality,..."
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If my PROSPECTIVE client indicates this he will not be my client!
@murphy?ÿ
I don't think a "multiplier" should ever be below 1.72 - I have seen this work for just over 50 years...
From the Manufacturing world, COST, QUANTITY, or QUALITY. Pick any two.
I always explained Quantity as Time.?ÿ
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@murphy?ÿ
I don't think a "multiplier" should ever be below 1.72 - I have seen this work for just over 50 years...
The firms I have worked with (all in business for several decades and well respected with lifetime clients) never went below 2.5x typically. I have a close relationship with a grading/utility contractor who has always told me his multiplier can't be below 3.5x to 4x depending on the work required to be done. Granted that's a different market, business model, materials and assets being purchased by the business, but it gives some perspective on what markets can bear
Are you saying a linear foot multiplier?
I estimate project costs based on the time I think it will take to get it done multiplied by hourly rates.?ÿ This total is then multiplied by 1.25 because I can't curb my optimism.?ÿ It's not rational but it works for me.
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OOPS! I meant 2.7. That would be the Fixed-Fee price based on the average hourly wage of the folks performing the work.
OOPS! I meant 2.7. That would be the Fixed-Fee price based on the average hourly wage of the folks performing the work.
agreed. nowadays finding some one to do the work (efficiently & effectively) in order to pay them the wage seems to be the biggest problem most surveyors & engineers are having. even recent graduates of 2yr & 4yr programs would rather keep going to school for a while longer or take a the easy government job than work for consulting firms
Are you saying a linear foot multiplier?
I estimate project costs based on the time I think it will take to get it done multiplied by hourly rates.?ÿ This total is then multiplied by 1.25 because I can't curb my optimism.?ÿ It's not rational but it works for me.
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ditto - optimism is a budget buster
Most field days I will take along one more project file just in case we have great luck all day on our planned project(s).?ÿ In almost every case it comes back unopened.?ÿ?ÿ
I think you and NCDirtman both might be mistaken. A 2.5 or 2.7 multiplier on the hourly wage of the employees is likely to account for the firm??s overhead costs. Things like benefits, rent, insurance, social security taxes, workers comp, etc. Thats totally different than padding an estimate to cover the unexpected.
Project update.?ÿ ?ÿI'm still waiting for a site visit.?ÿ Customer is in quarantine.?ÿ ?ÿ
I'll keep you posted.
@bushaxe No, I was talking the whole survey but failed to consider the subdivision portion.
