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Consultants鈥� Fees

Engineers鈥� fees are on the up. A new report by
the Fees Bureau has found that fees have increased by almost 20% since 2000. M&E Services Engineers Fees said: 鈥淥ver the last six years the average charge-out rates [for engineers] has increased by 18%. Average rates charged by principals and partners has increased from 拢65 per hour in 2000 to 拢80 per hour in 2006; sole principals鈥� rates are up from 拢60 to 拢70 per hour; while chartered engineers have seen average charge-out rates rise from 拢40 to 拢47 per hour.鈥�

According to the report鈥檚 authors, the rates charged by all engineers are broadly similar. 鈥淭here is very little difference between the hourly rates recorded by M&E services engineers compared with all consulting engineers.鈥� For example, the report cites the average rate charged for a chartered M&E engineer as 拢46 per hour, while the average for all consulting engineers was 拢1 higher at 拢47 per hour.

The charge-out rate varied considerably, depending on the size of the firm. Chartered engineers working for firms with between two and five staff were charged at an average of 拢38 per hour, while chartered engineers working for firms with 100-plus staff were charged out at the much higher average of 拢56 per hour.

Location was also a significant factor. The report says that a chartered engineer in London would on average be charged out at 拢65 per hour, whereas those working in Scotland, the north of England or the Midlands would be charged out at a more modest 拢45 per hour. Surprisingly, given the amount of work in the region, engineers in the South East were charged out at the lowest average rate of just 拢40 per hour.

The survey found that the percentage of fees charged by engineers varied depending on the difficulty of the project and the type of service offered. The size of the project, too, was important in establishing the level of fees, with engineers鈥� fees decreasing as a percentage of the M&E cost as the value of the project鈥檚 M&E elements increased. It cites the estimated average percentage fee charged for a 拢1m new-build job as 4.5%, which is nearly twice the average fee of 2.8% charged for a 拢5m job.

Fees were also higher for refurbishment work than for new-build work. However, there was a large variation in the range of fees charged. Variations in fees were also found between different industry sectors. For new-build jobs the highest average fees were recorded for industrial, education and leisure work, with fees charged in housing and offices lower. For refurbishment, the opposite appears to be true. Housing and offices have the highest average fees.

The Fees Bureau is the publishing arm of research firm Mirza & Nacey.

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