Rick:
Rick said:
In my business, I may perform some level of the structural calculations and...
I don't disagree with this post. I might have slightly different opinions on a few points but otherwise I'd say I agree.
Rick said:
Under no intent would I suggest you work for less than your expenses but...
A few parts in this post I want to reply to, see below:
Rick said:
Clients aren't their for you to buy yourself a $100 Million super yacht. If you are serving predominantly clientele market with average income of around $50,000 a year then YOU need to operate and control your costs so that you can live and operate on a similar level income on the day to day....
Again, only speaking for myself, but I balance my approach between what I am willing to do a job for, the risk and complexity of the job, and the market value of the engineering services provided. So, a 2 mile skyscraper will be billed a lot differently than designing a few post for Mrs. Henderson's new deck. If someone is willing to pay me $100 million for an engineering job then I wont turn it down but I wouldn't ask for it.
I don't know about you but most engineers aren't making bank of their clients. I drive a 8 year old Ford Focus, wife drives a 17 year old Toyota Corolla, I live in a modest house, about my only luxury is I fly a small Cessna private plane that I share with a club. I could chase the money but I like what I do and I have enough to be happy and comfortable.
Rick said:
Even in architectual/engineering firms, most employees has to pay for their own licenses or certifications, professional liability and E&O insurances and other things from their own base salary.
They are bad at negotiating with their company if they are paying for them out of pocket (if they're not self-employed). These are business expenses, make the business pay. It's better for everyone financially if they do.
Rick said:
...That's only about $12,000. Some years, that maybe only 10% disposable income. That is about $6,000....
Rick, you keep making these calculations asserting essentially that one should live within ones means and not charge more than a market can bear, but there is a flip side to this. You don't get to hire a doctor or lawyer for $10/hr (unless they're generous or working probono of course). Why? Because there is an investment in time and money to become and maintain those professions. Same for engineering.
For example, pretend I didn't go to college and intern to be an engineer. For me personally this would have saved 10 years and about $40,000 (most engineers are probably in for a lot more money, too). Let us also include the hours spent studying for my licensure exam (lets do this at $10 per hour for my time); 600 hrs x $10/hr = $6,000. Assuming I make the average income for my age/education in a field like IT (or similar technical field), I'd make on average ~$46,000 x 4 years = $184,000. Let's say 80% of that is after tax = $147,200.
Summing all that I get $193,200 and lets subtract frugal living expenses of $25,000 per year for 4 years. We get $93,200.
So, if I had $93,200 when I would have graduated college 10 years ago, at a 4% monthly compound interest rate we end up with $138,945 of lost profit that I could have right now if I worked instead of going to college, and lived frugally while investing money at a mild return rate.
The fact of the matter is I invested time and money to learn my profession rather than go into a trade right out of high school. I was actually getting payed $12/hr to do IT work in high school and could have easily made a career out of it but decided to invest my time and money in a college education to become an engineer. I would hope to be compensated for this investment of my time and money.
If the market can't support it then I've lost my investment. Fair enough. But if the market can support it then like heck I'm going to design a house for a few hundred bucks. You need to pay me for my time invested and if you can't I'll just move on to the jobs that will.
This is all to say nothing of the fact that you incur a lot of liability by doing engineering. Assuming I will eventually be sued I need to ensure that the work I do during my career was worth it for this added risk of a lawsuit.
Bringing this all back around to the original topic. Engineering is a profession; literally. You "profess" your expertise. Thus, we invest this time and money to learn and earn that title. But if any old snake oil salesman, person with a BS in engineering, sales "engineer", or whatever other title self-imposed, tries to muddy the water then we've lost the trust in the profession. Thus, the reason for licensure. You need to have benchmarks to hold out that can be trusted by those outside the profession.
Car designers (IMO) don't need to be licensed, their profession stands out based on quality alone. People can quickly find out if a car if poorly designed and the designer of the car will be punished by the free market. There are also government oversight and other regulations and standards imposed, it's even more restrictive than engineering licensure. But the cost of this engineering is distributed over hundreds of thousands of cars. We can only distribute our engineering overhead to a few hundred jobs at most.
Regarding the original topic, some guy calling themselves an engineer in various circumstances is a tough question without an easy answer. Licensure tries to ensure that nobody can muddy the waters of the engineering profession. Licensed engineers can and should charge for their engineering overhead and liability.
In summary, engineers have to charge what a market can bear but the playing field needs to be level. Licensure helps to ensure that someone isn't competing unfairly because our industry relies so heavily on professing ones competency. That's why we get licensed and that's why we can and should charge more than an unlicensed person. If the economy gets so broken that our services can't be afforded then so be it. But then you'll get shoddy engineering, failures, loss of life and property, and the end result will be a push for oversight and, you guessed it, licensing of engineers.
Professional Engineer (ME, NH, MA) Structural Engineer (IL)
American Concrete Industries