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Hourly Rates vs Fees vs Liability

Hourly Rates vs Fees vs Liability

Hourly Rates vs Fees vs Liability

Hi all,

I have a general question, especially Structurals here.  I get alot of jobs from various architects and owners wanting to pay for my services buy the hour.  Thats all good.  But when it takes me a small amount of time to design a building thats costs a great deal to build or holds millions of dollars worth of equipment how do you justify, or do you, charging a fee for your servicesbased on what you provided and the liability you assume, not just on the time it takes to do it?  Thank you.

RE: Hourly Rates vs Fees vs Liability

You don't!  When I estimate a project, I consider the estimated time, the estimated number of drawings and the estimated value and prepare a fee based on this... I also factor in how 'hungry' I am at the time and if I really want/need the project.  This latter is based on my reluctance to have my client try a different consultant <G>.


RE: Hourly Rates vs Fees vs Liability

Why not break out the bil into two parts - the hourly part and the liability part.


Greg Locock

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RE: Hourly Rates vs Fees vs Liability

Don... in some jurisdictions that my not hold water...


RE: Hourly Rates vs Fees vs Liability

I am not saying the client would not have a negligence claim in excess of the contract amount, but an error or ommission could be limited to the value of the contract.

Don Phillips

RE: Hourly Rates vs Fees vs Liability

Dont be scared to ask for a sum...You are providing a service not just an hourly amount.  I am under the impression that you probably will not starve to death if your customer says no.....so....dont be scared, your time/ideology/drawings/seal is worth an amount....tell them...I promise less than 20% say no, and when they do, they wind up coming back begging again when they have been told no!!!!  

RE: Hourly Rates vs Fees vs Liability

Do you have not some kind of liability insurance in USA? Here in Bulgaria it is mandatory and differs according to the project (not design contract) price.

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