Fees for Contracting

[rheim]

I am doing about half of my jobs as an independent subcontractor for a small engineering firm. They pay me 50% of the contracted price. This looks ok at first sight. But then, they don't cover anything else. I have no dedicated desk at their office, and I pay for everything out of my cut, like design software, reference books, printing cost, travel etc. Their only contribution my to jobs is to mail/email a proposal to the client, collect his payment, and write ma a check. Is this a fair deal?

Also, can somebody give me an idea how much I would have to pay a draftsperson if I outsource my drafting? No rocket science, just residential floor framing plans, shear wall schedules, and details.

Thanks to all you guys for any input.

 

[MacGyverS2000]

Not a complete answer, but the software shouldn't be considered unless it's your first job or it's specialised software. If AutoCAD is a necessary tool for jobs of your type, that will be a write-off and should be taken care of already. Same probably goes for reference books. You should consider the money to be made from any further jobs as partly going towards travel, consultant/draftsman fees, etc.

Now, whether or not this is still worth it is up to you, I'm simply saying don't look at your necessary "tools" as needing to be paid for with every job you do... they should be considered amortized over multiple jobs/years.

Dan - Owner

http://www.Hi-TecDesigns.com

 

[DonPhillips]

I use a couple of guys who charge anywhere from $45 to $50 an hour - depending on what the job is and which guy I use.


Don Phillips

http://worthingtonengineering.com

 

[csd72]

50% is good, usually I got around 40% for after hours work from home, but that was on the basis that I used their software when required.