Link Overview:

Section 1
Categories of Service...

Section 2
Fee Basis Options...

Section 3
Special Services and Conditions...

Section 4

Appendix A
Costs of Engineering...

Appendix B
Example Hourly Rate Calculations...

Appendix C
Categories of Service 3 and 4...


Appendix B
Hourly Rate Calculations


In general, hourly rates can be determined based on an individual's salary and fringe benefits, the annual working hours and an appropriate payroll cost factor. For example,

Hourly Payroll Cost = Annual Salary + 25% Fringe Benefits x Payroll Cost Factor
  1950 hours per year
  = 60,000 + 15,000 x 2.0
  = 76.92

Annual salaries for typical positions and responsibility levels can be found in APEGGA's publication entitled The Value of Professional Services.

Hourly rates for principals of firms will vary according to individual qualifications and level of experience. The rates should reflect the additional authority and responsibility associated with such positions. A principal of a firm, as used here, is defined as a professional who undertakes to provide responsible technical and organisational direction to the consultant's professional practice and who represents that professional practice to clients.



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