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Engineering Rates and Payment Schedule

Engineering Rates and Payment Schedule

Engineering Rates and Payment Schedule

I am trying to determine what the average rate for Engineering Services should be. What do you feel the going rate for the following services should be?
1. Professional Engineering - Design, Analysis,Code Verification and Reporting
2. Designer Work - Modeling and Drafting
3. Clerical - Accounting and Document Preparation

Also what are standard Payment Schedules? Should I be requesting 25% upfront, 25% for preliminary design, and 50% at final submission with a net 30 requirement for payment?

RE: Engineering Rates and Payment Schedule

Every firm I know uses multipliers for staff rates. Typically lower paid employees have higher multipliers and more expensive employees get closer to a set margin above salary. The multiplier used is set so the company can pay its bills and make profit. Larger firms have the financial strength to lower multipliers and accept less profit on repetitive low risk work.

The standard payment terms I see in my area are 30 days before 10 to 20% interest. With government and large corporations they usually have there own terms or you need to negotiate. Upfront payment I've only seen used on numbered corporations, or low cost lump sum jobs.

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