×
INTELLIGENT WORK FORUMS
FOR ENGINEERING PROFESSIONALS

Contact US

*
*
*
*

Thanks. We have received your request and will respond promptly.

Log In

Come Join Us!

Are you an
Engineering professional?
Join Eng-Tips Forums!
  • Talk With Other Members
  • Be Notified Of Responses
    To Your Posts
  • Keyword Search
  • One-Click Access To Your
    Favorite Forums
  • Automated Signatures
    On Your Posts
  • Best Of All, It's Free!
*Eng-Tips's functionality depends on members receiving e-mail. By joining you are opting in to receive e-mail.

Posting Guidelines

Promoting, selling, recruiting, coursework and thesis posting is forbidden.

Students Click Here

Engineering Partnerships

thread784-205162

Engineering Partnerships

Engineering Partnerships

(OP)
I’m considering going into business with a partner. Does anyone know how ownership in a typical MEP firm would work with one mechanical and one electrical partner? If we only worked on the same jobs, mechanical would represent 60% of the typical fee. Does that make 60% ownership fair? Once the business got going though you would hire more mechanical guys than electrical and maybe this would even out the money situation, but with only two P.E.’s the mechanical would also carry 60% of the liability. I would appreciate any opinions on the subject.

RE: Engineering Partnerships

Would the electrical engineer only do 40% of the work or would they do the same amount of work but be more involved in generating orders and all the other aspects of running a business?

However you decide to go I would strongly recommend getting a partners agreement drawn up before you start out.

RE: Engineering Partnerships

hvac1701

I agree with ajack1, but to expand a little.  What you need to do is a very unbiased assessment of the skills you each bring to the table (apart from the engineering side).  Assuming you are not going to hire a business manager, admin asst, marketing, etc.  

Only part of the work will be actual engineering, the business side of it will need to be addressed.

Only after sitting down and talking through the overall management and running of the business can you decide what the percentage splits will be.

Greg Lamberson, BS, MBA
Consultant - Upstream Energy
Website: www.oil-gas-consulting.com

RE: Engineering Partnerships

Also worth considering who puts in what amount of money to start the company? Would that also be a 60-40 or a 50-50 split, any loans you take out in the early days will also probably need securing against individuals rather than the company, what is the split on that?

I would give this some serious thought.

RE: Engineering Partnerships

hvac1701, it is very difficult to split exactly responsibilities and profits in engineering business. I know it from my experience. We are two partners, both engineers, but my partner is dealing mostly with management and commercial activities and I do engineering. My obligations include design and commissioning - the latest connected with long trips and stay far from family, often in not so good living conditions. With some good selling my partner can contribute more profit/per working hour than me. My work sometimes is more difficult and needs more engineering expertize than his. How to evaluate everybody's contribution? For me it is not possible, so we keep our 50/50 percentage and each one just is doing his best for the company.
I am not sure whether my experience could help you, as such things are also matter of national culture and I am not sure it is applicable to you. Just my 50 cents...
www.triel.bg

------------------------
It may be like this in theory and practice, but in real life it is completely different.
The favourite sentence of my army sergeant

RE: Engineering Partnerships

(OP)
Thank you for all the advice.

Red Flag This Post

Please let us know here why this post is inappropriate. Reasons such as off-topic, duplicates, flames, illegal, vulgar, or students posting their homework.

Red Flag Submitted

Thank you for helping keep Eng-Tips Forums free from inappropriate posts.
The Eng-Tips staff will check this out and take appropriate action.

Reply To This Thread

Posting in the Eng-Tips forums is a member-only feature.

Click Here to join Eng-Tips and talk with other members! Already a Member? Login

Resources

Low-Volume Rapid Injection Molding With 3D Printed Molds
Learn methods and guidelines for using stereolithography (SLA) 3D printed molds in the injection molding process to lower costs and lead time. Discover how this hybrid manufacturing process enables on-demand mold fabrication to quickly produce small batches of thermoplastic parts. Download Now
Design for Additive Manufacturing (DfAM)
Examine how the principles of DfAM upend many of the long-standing rules around manufacturability - allowing engineers and designers to place a part’s function at the center of their design considerations. Download Now
Taking Control of Engineering Documents
This ebook covers tips for creating and managing workflows, security best practices and protection of intellectual property, Cloud vs. on-premise software solutions, CAD file management, compliance, and more. Download Now
Close Box

Join Eng-Tips® Today!

Join your peers on the Internet's largest technical engineering professional community.
It's easy to join and it's free.

Here's Why Members Love Eng-Tips Forums:

Register now while it's still free!

Already a member? Close this window and log in.

Join Us             Close