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RFPs & RFQs for A & E

RFPs & RFQs

RFPs are Requests for Proposals and RFQs are Request for Qualifications. In both cases these are notices of the need for architects and/or engineers. Both types are advertised in newspapers, or in the FedBizOpps (FBO) database, or elsewhere. Both require a submission of qualifications. But, an RFP usually also requires a submission of a fee proposal or an hourly rate schedule.

You may become aware of these by calls from previous clients, potential new clients, or from other contacts.

RFPs/RFQs – AS A CONSULTANT

If you are a Consulting Engineer, on most projects, you will not be the “prime professional”; you will be a “sub-consultant”, usually to an architect. For example: If a hospital is building a new wing they will hire an architect to handle the whole project. He would be the “prime professional” and you would be a “sub-consultant” to the architect in your specialty.

On the other hand, if the hospital wants to add a generator they might hire an electrical engineer to be the “prime professional”, who might in turn, hire an architect as a “sub-consultant” to design a generator building and a mechanical engineer as a “sub-consultant” to design the exhaust, ventilation and fuel supply requirements.

Assuming that you are not qualified to be the “prime professional”, notify all existing clients who would likely to be qualified and interested, by e-mail or fax. Encourage them to respond and include a list of your previous similar projects and request to be part of their team.

Attend the “pre-bid” conference. Be seen and get a copy of the attendance list. E-mail or fax qualifications and a request to be part of the team of the architects that were not accompanied by an engineer of your discipline. Follow through with a phone call explaining why you are the best qualified consultant for the project.

RFPs/RFQs – AS PRIME-PROFESSIONAL

Pay special attention to projects for which you are qualified to be the “prime-professional”. On these you will sit in the driver’s seat, will not have to give a portion of your fee to an architect, many of these will lead to repeat work, and often to referrals.

Read the request carefully and respond completely, in the order listed, with the number of copies requested. Also include other appropriate marketing materials.

OTHER ADVICE:

To learn about “FEE CALCULATIONS” “Click Here”.

To discover “FEE CONSIDERATIONS” that you might be overlooking “Click Here”.

Excerpted from The “Complete Guide” to CONSULTING ENGINEERING © 2015 John D. Gaskell. Used with permission of Professional Value Books, Inc. All rights reserved. Order at http://www.TheEngineersResource.com. Use coupon code “paperback” and save.

 

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A & E OVERTIME

Most firms are concerned about paying hourly employees “over-time”. I never was concerned about A & E OVERTIME.

Happy Employees 

5-10 hours of overtime per week makes most employees happy. But, any more than that, makes them less productive.

Greater Profits

I believe that limited over-time actually improves your bottom line.

Your employee’s hourly billing rate should be 2.5 to 3 times what you actually pay him, in order to cover benefits, taxes, overhead and profit. If you pay an employee $60/hour, his billing rate is about $175. That rate covers all the items listed, based on a 40 hour work week. If he works overtime, you pay him $60 x 1.5 = $90 plus a little extra in payroll taxes, electricity and heat. But the cost to you, for that extra hour, is a lot less than $175.

Conclusion:

Adjust your work load so that your employees will be working 5-10 hours of overtime each week and it will increase your bottom line.

To learn how to calculate winning fee proposals “Click Here”.

To discover how hiring Consulting Engineers will increase profits “Click Here.

To find out about other fee considerations “Click Here”.

Excerpted from The “Complete Guide” to CONSULTING ENGINEERING © 2015 John D. Gaskell. Used with permission of Professional Value Books, Inc. All rights reserved. See DISCLAIMER and order at http://www.TheEngineersResource.com. Use discount code “paperback” and save.

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Architects Fee Considerations

There are “Architects Fee Considerations” other than percentages, hourly costs and other costs.

Things to consider include:

  • What other work do you expect to have during the likely schedule of this project? (Dead-lines often creep.)
  • How much competition do you think that you have?
  • How good a client has this been or is expected to be?
  • Is this phase 1 of a multi-phase project?
  • The question usually boils down to “How hungry are you”?
  • If you are a “start-up” and the partners are doing most of the work, you can put in some extra un-compensated hours and cut the fee, (a little).
  • Don’t be concerned about overtime. 5-10 hours of overtime per week makes most employees happy. But, any more than that, makes them less productive. However, I believe that limited over-time actually improves your bottom line. To learn the reasons why “Click Here”.
  • Some projects are “losers”. Try to pass-up most of them.

Always calculate your estimated hours and other costs including profit and never take on a project that the Architects Fee doesn’t correlate well.

I have just shared with you some of the fee “secrets” that took me 35 years to perfect. Apply my advice and use your best judgment; your proposals will win you work.

To learn about FEE CALCULATIONS “Click Here“‘

To discover HIGHER PROFITS “Click Hear“.

To find out about the benefits of OVERTIME “Click Here“.

Excerpted from The “Complete Guide” to CONSULTING ENGINEERING © 2015 John D. Gaskell. Used with permission of Professional Value Books, Inc. All rights reserved. See DISCLAIMER and order at http://www.TheEngineersResource.com. Use discount code “paperback” and save.

 

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Higher Architects Profits

Hiring outside consulting engineers guarantees higher architects profits. Here is the proof.

Architects are normally paid a fee based on either a fixed dollar amount or a percentage of construction cost. Based on the project budget and the use of a current cost data book, it is easy to calculate the approximate construction cost of a consultant’s discipline.

Traditionally outside consulting engineers charge a fee that is less than the architect’s fee as it relates to the construction cost of the consulting engineers discipline. The difference is guaranteed higher architects profits.

Continue reading Higher Architects Profits

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Architect Fee Calculations

Architect fee calculations need no longer to be a mystery. Architects are normally paid a fee based on either a fixed dollar amount or a percentage of construction cost. Based on the project requirements and the use of a current cost data book, it is easy to calculate the approximate construction cost and associated fee for any assignment.

Continue reading Architect Fee Calculations