Engineering services multiplier? 1

[LaSalle1940]

Here's one for those in general consulting: what is a typical multiplier for process engineering services for front-end/conceptual design services? Are we talking about 1.8? 1.9? 2? More? Less?

 

[IRstuff]

Multiplier for what? The typical multiplier is NOT selected willy-nilly, but is based on your cost structure and overhead expenses.

While a TYPICAL number might be in that general ballpark, you need to firmly establish what your salary is and what your overhead expenses are to set the correct price. It's certainly will NOT look good if you have to go back to your customer and tell them you need to change your rates because you screwed up in your calculations and you now find yourself losing money.

TTFN

 

[LaSalle1940]

Actually, I'm trying to pull together a budgetary estimate for a proposal to an engineering company: I don't work there presently so I don't know details about their salary structure, overhead, etc; hence, the question about a reasonable ballpark value for a multiplier for engineering services.

 

[IRstuff]

??? Why should you care what your customer's overhead rate structure is?

TTFN

 

[owg]

For oil refining and petrochemical work, process engineering would be 2-3% of total field cost, and total engineering including home office cost would be 13-14% of total field cost.

HAZOP at

http://www.curryhydrocarbons.ca

 

[jay165]

In my experience, anything over 2.0 is considered excessive. Typical is 1.75 to 1.85.