Bryant & Associates' fees and how to relate them to your internal costs?

First, I'd like to say that all things are negotiable.  The Standard Rate Schedule below is based on my cost structure, typical utilization rate and the prevailing market for the type services that I provide.  Issues such as the amount of travel required, people I'd be working with, the technical or organizational challenge posed by the project, organizational/political potential for success or failure and the growth potential of the technology or organizational concept being implemented all play a role in the negotiation.  The Standard Rate Schedule is a guideline and reflects my preference for longer, local assignments (i.e. 32% discount for assignments approaching full-time that don't have substantial travel requirements).

STANDARD RATE SCHEDULE:

Billable Hours

Hourly Rate

Discount

 

1-100 

101-500

501-1000  

1000-1500

1501-.........

$110      

$100     

$90     

$80     

$75     

0%   

9%   

18%   

27%   

32%   

 

Note: Contracts may be written at discounted fees.  However, early termination of the contract by the Client will require that the Client pay for all hours worked based on the Standard Rate Schedule as determined by the number of hours worked prior to early termination.

 

TRAVEL

bullet Client pays all required travel/lodging/meal related expenses.
bullet Client pays for required travel time at contract hourly rate.
bullet Client pays for weekly return home for contracts outside of a 100 mile radius of the Albuquerque area.
bullet Client pays for business class airline tickets for contract work performed outside the continental United States, if business class is not available then client pays for first class airline tickets.

When comparing your hourly costs to the hourly costs of bringing in a consultant, calculate your true cost of having an employee on the payroll to do the work including an employee productivity factor and compare that hourly figure to the hourly rate of the consultant or contractor.  Typically, if you are comparing "apples-to-apples", the consultant's hourly rate should be 15-40% higher than your true internal costs for the same resource.  This figure represents the premium that you will pay for the availability of a scarce temporary resource and the consultant's operational overhead and profit.

 

Copyright 2002 by:
Richard C. Bryant/Bryant & Associates
All Rights Reserved

Page Last Updated: March 25, 2004