Engineering Services Cost and Pricing Guide

By: Richard L Mikut Jr., P.E.

 

        We understand that using engineering services on a project can have a major impact and it is a huge decision on who to use.  Our goal is to empower you with honest and reliable costing information to help you budget for your project.

      How much does your engineering services cost is a question we get all of the time.  Here we will try and answer your question and give insight as to what goes into the cost.  First, you can check out our Engineering Services Rate Sheet.  This will give you our hourly rate and other key items such as travel that would affect pricing.  If you are bidding a time and materials (T&M) job and need a rate, this would be a good resource to use.

     If you are a looking for a firm price for engineering services on a project, the final price will depend on a few factors.  Some of these factors include:

  • overall scope
  • number of drawings
  • calculation packages
  • professional engineer (PE) stamping
  • length in time to get the job done
  • number of site visits required

      When looking at this price, it should be viewed as an investment in the project rather than an expense.  For example, if you didn’t use an engineering service and your crew rigged to a beam that they thought was large enough but instead bent it in the process, how much is that costing you in downtime and delays?  The additional price of ensuring structural adequacy during a project can save time and keep a project on schedule. 

     Let’s start by talking about the scope of the project.  The more detailed scope that can be given, the better pricing you will receive.  A detailed scope takes out the potential for additional hours for unknown scope or guess work that must be done to ensure the job is covered.  This scope should include, what each group is responsible for and detail out what is to be shown on drawings, if calculation packages are required, if a PE stamp is required, how many potential site visits, when the scope is to be completed by, and the location of the work.  The more detail that is given for each of these, the better the pricing will be.  The overall complexity of the scope also drives the price.  For example, analyzing temporary loads in a boiler structure all the way down to the foundations versus just sizing a couple lugs for temporary support has a big swing in pricing. 

     Another way to help in this process is to involve the engineer in the proposal phase.  At this point, the engineer can ask more questions, have a better idea of the project plan and can help give a better proposal number.  In this effort, the engineer can provide preliminary analysis, temporary steel take-offs and preliminary drawings to help you enhance your proposal efforts.  This also leads to less work upon the award of the project after this enhance proposal wins!

The number of drawings also impacts the price. 

     This number may be different from company to company, but the idea here to let the engineer know what you expect to see on drawings.  This will help them understand the level of detail you are looking for.  Do you just need an overall sketch to help the team understand, or are you looking for drawings down to the structural steel detailing level?  One of these takes up significantly less time than the other.  When estimating our cost we usually use 6 to 18 hours per drawing depending on the complexity of the job.  For lift plans and simpler layouts we are usually around 6 hours or less, but for complex boiler rigging jobs, it can take 18 or more hours for a drawing to be complete. 

     Calculation packages are requested during some projects for a third party review or because the end customer wants to review the plan on their own.  We charge an extra fee of $250 per calculation package due to the extra time it takes to prepare a neat and tidy package to hand to someone else.  Think of it as making a cake for yourself versus someone else.  If the icing on your own cake doesn’t look all that pretty, you have no problem eating it and enjoying it.  But, if your icing on the other cake is not perfect, you would want to take the extra time to make sure the cake was iced best as possible for the sake of aesthetics. 

     PE stamping of drawing packages is part of our core business, but not everything in this world needs a PE stamp on it.  There are a lot of business costs and licensing associated to having the PE license in various states.  So for this reason, we charge an additional $250 for each package that requires a PE stamp.  This does two things: one it simply helps us cover our licensing costs, but more importantly it also prevents customers from needing every drawing ever created to get PE stamped.  We will work with you to find the best solution for your project regarding what needs stamped and what doesn’t depending on state laws and contract requirements. 

     The length of time to get the required scope completed also drives the cost of engineering services.  If you call on a Friday night and need the drawings first thing Monday morning, we will definitely get the job done for you!  But we will be using our overtime and weekends rate.  In every quote we provide, we give the estimated time for delivery of the scope.  This is something that should be discussed during the estimate so everyone is on the same page with regards to the expectations of the job.

     Another item that can be easily overlooked is the number of site visits required during the project.  Depending on which state the project is in and the frequency of visits, this part of the price can grow quite large.  We usually like to include at least one site visit into each of our quotes because having boots on the ground allows us to better understand the project and possibly find issues in the field before getting to far down the line in engineering.  Our quotes will include the quantity and lengths of visits that are included and our rate sheet includes the terms for any site visits beyond that.  Other items that should be addressed regarding site visits is if there is any special training to be on-site, any special personal protection equipment, and any other special requirements for the particular project.  The expectation as to the number of visits should be discussed early on so everyone is on the same page.

     We hope that walking through what goes into an engineering services price has been helpful and insightful to you.  Remember, using engineering services on your project shouldn’t be considered an expense, but an investment to the safety and success of the project.  Here at The Dothea Group, we rely on having efficient, engineered solutions to better your project, improve safety, and increase your bottom line. 

     If you are interested in learning more about our engineering services, contact us today.  We can partner with you to ensure a successful bid or project.

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