All,<br><br>I'll concur on the don't take project based payments.<br>Clients rarely can be specific enough and not change requirements to make a good estimate possible.<br>You don't want to end up working for $10/hr in the end.<br>
<br>-Bill<br><br><div class="gmail_quote">On Mon, Feb 9, 2009 at 6:18 PM, Delbert Franz <span dir="ltr"><<a href="mailto:ddf@iqdotdt.com">ddf@iqdotdt.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="border-left: 1px solid rgb(204, 204, 204); margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;">
<div class="Ih2E3d">On Monday 09 February 2009, Stephen Cattaneo wrote:<br>
> Hi friends,<br>
><br>
> I've only had one professional position since college. I was paid salary.<br>
> My company recently downsized 40% of the company (myself included). I'm<br>
> looking for new work.<br>
><br>
> I'm open to contract jobs, but they want to know how much I charge hourly.<br>
> I'd assume they do not cover things like 401k/dental/medical for such a<br>
> position; I'd like to take these things into consideration when talking<br>
> wages.<br>
><br>
> Do you guys use this formula (or something similar) and if so, what value do<br>
> you use for your modifier?<br>
><br>
> hourlySalary = yearlySalary / 52 * 40 # 52 weeks in a year, 40 hours in a<br>
> week<br>
> benefits = hourlySalary * benefitsModifier<br>
> totalHourlyWage = hourlySalary + benefits<br>
><br>
> I was thinking something between 5% and 15% -- Does this seem reasonable in<br>
> your experience?<br>
<br>
</div>Hi all,<br>
<br>
I have been working in consulting in Civil Engineering since 1970 and<br>
yes, to survive one has to charge an hourly rate that at first seems<br>
way too high but after years of experience it is not. Being able<br>
to bill out more than 50-65 percent of the time comes rarely.<br>
There are endless things needing to be done that no one can be<br>
asked to pay as a direct charge to their project. Currently I<br>
am charging $120/hour, which I need to raise to $140 to $160/hour<br>
on my next contracts. A rule of thumb to use is to take your<br>
desired hourly rate, the one you would be paid if you were<br>
employed somewhere (do not include benefits) and multiply<br>
by 2.5 to 3.0. (To put this in perspective, the rates I<br>
charge, are less than that charged by junior-level attorneys:-)<br>
Typical rates for an attorney with the experience I have in<br>
my field would be $500 to $1200/hour--perhaps we picked the<br>
wrong field:-) )<br>
<br>
Another option, if the task seems well defined and you are confident<br>
in your ability to complete it, is to seek a lump sum, but many<br>
clients do not like it. I rarely get such arrangements, but in<br>
many cases I would prefer them. Tally up the total for the project<br>
and then specify what is delivered and that is that--no hourly charging<br>
etc, but then you have to get the work done for that amount and deliver<br>
what you promised! The risk for loss is greater, but if done well, the<br>
risk for larger margins is greater as well.<br>
<br>
Hope this helps.<br>
<font color="#888888"><br>
Delbert<br>
</font><div><div></div><div class="Wj3C7c"><br>
<br>
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