Salary as a subcontractor employee
Salary as a subcontractor employee
(OP)
Hi,
I'm a structural engineer who's worked for a local firm in Washington DC area for the last year and a half. Soon after I was hired I was asked to work for another company as a subcontractor on a challenging project. Today, I accidentally found out that the company I work for charges the other company twice as much as they pay me, while they had unofficially told me that they only charge 10% more than my salary. I'm paid $35/hr and thought it's not too low to start with. Now I'm really confused about how much I'm worth. Do you have any idea what's happening here? I can use some good advice.
Thanks
I'm a structural engineer who's worked for a local firm in Washington DC area for the last year and a half. Soon after I was hired I was asked to work for another company as a subcontractor on a challenging project. Today, I accidentally found out that the company I work for charges the other company twice as much as they pay me, while they had unofficially told me that they only charge 10% more than my salary. I'm paid $35/hr and thought it's not too low to start with. Now I'm really confused about how much I'm worth. Do you have any idea what's happening here? I can use some good advice.
Thanks





RE: Salary as a subcontractor employee
RE: Salary as a subcontractor employee
How did you think your company pays for the rent?
TTFN (ta ta for now)
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RE: Salary as a subcontractor employee
RE: Salary as a subcontractor employee
If you are working as an employee of a company, that company needs to charge between 3 and 4 times what they pay you so that the can cover all the internal and external costs.
If you are working as a subcontractor, YOU set your rates (negotiable, of course). What they charge their client is of no concern to you. You should only be concerned about what you get paid by them.
If you are selling your time to a company, as a subcontractor, for $35/hr, you are seriously undervalueing your services. You are probably getting no benefits and you expose yourself to personal liability.
When you sell your services too cheaply, whether salaried or subcontracting, it is a disservice to all engineers and the profession in general.
$35 per hour is relatively low, even for a salary, if you are licensed and an experienced engineer. That's about $70,000 per year. It is way too low if you are a subcontractor having to provide everything for yourself.
We start subcontractors at 67% of our charge rate and it can go as high as 80%.
RE: Salary as a subcontractor employee
RE: Salary as a subcontractor employee
RE: Salary as a subcontractor employee
RE: Salary as a subcontractor employee