Subject: [NEXTEL-1] Con$ulting Engineer$ Are Financially $ecure

From: Marcel <[email-masked]>
Date: Thu, 10 Apr 2003 15:13:05 -0400

Consulting Engineers Are Financially Secure

by Chris McManes

Many IEEE members who are self-employed consultants are doing well financially,
according to a recent comprehensive survey conducted by IEEE-USA’s Alliance of
IEEE Consultants Networks (AICN)
(http://www.ieeeusa.org/business/2002feesurvey.pdf). The committee surveyed its
members to help them gauge how much to charge clients.

“When a consultant is preparing a proposal or negotiating a contract, one of the
ongoing concerns is deciding how much to charge,” said Bob Gauger, P.E., of
Irvine, Calif., who summarized the results. “To establish a fixed price or a fee
that is fair yet competitive, the consultant needs to know what other
consultants in similar fields charge. This survey was conducted in response to
that need.”

Of the more than 2,000 technical professionals surveyed who work as consultants,
400 responded. After removing those who work more than 50 percent as an employee
or contractor, 333 independent consultants remained. Most work in the hardware,
software, systems engineering or power fields. Their responses served as the
basis for the findings.

The committee is pleased with both the survey response and subsequent findings.
“We think our findings are the best ever gathered and reported for technical
independent consultants’ fees,” Gauger said. “We received, by far, the largest
number of respondents any similar survey has ever received.” Gauger noted that
only 137 consultants responded to AICN’s 1998 national survey, and the
Professional and Technical Consultants Association received only 91 responses to
its recent fee survey.

Responses Indicate Financial Well-being

The survey results indicate that independent consultants in technical
professions are doing well financially. In fact, seven respondents reported
incomes of at least $1 million per year, while 14 percent earn more than
$200,000 annually.

Income ranges vary by experience. Independent consultants with one to 20 years
of technical experience reported the highest median annual incomes ($120,000).
Respondents with 31 to 40 years experience reported a median income of $110,000;
while those in the 21- to 30-year range earned a median income of $100,000.
Finally, consultants with more than 40 years experience reported the lowest
income ($75,000).

Median hourly fees for all independent consultants ranged from $100 to $125,
with the minimum being $20 per hour and the maximum $2,000. The highest fees are
charged in the expert witness and forensics areas, where nine engineers reported
an average hourly fee of $247. The next-highest fees were charged in management
($173) and quality and reliability ($165).

When respondents were asked to designate the state where they perform most of
their consulting, Washington, D.C., reported the highest median hourly fee
($350). Gauger said this figure may be challenged, because it is based on just
four responses. In states with at least 10 respondents, California led the field
with a median hourly fee of $135. Colorado was next ($125), and Maryland and
Massachusetts followed ($110). The lowest median hourly charge was $85 (New
Jersey).

http://www.todaysengineer.org/Mar03/survey.asp

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