The Challenge of Winning Jobs on a Schedule of Rates
Winning a job on a schedule of rates is never easy, especially in Structural Engineering Consulting. Regardless of the value you bring to a project, the cost of one hour of your time becomes the focus when competing to secure a project. Even on lump-sum contracts, if variation rates are provided, that is where we are often measured.
It is an age-old dilemma for engineers and consultants alike.
Considering Products Before Services
Let us take a moment to step away from consulting services and think about products. When buying something valuable, we do not usually break it down to the cost of each part. Instead, we convince ourselves we need it, then evaluate price, quality, and the difference between one option and another.
Ultimately, the decision is based on value, not just the bottom price. We know the saying: “You get what you pay for.” The product we choose might cost more, but it is worth more.
Back to Structural Engineering Consulting
Professional services, including Structural Engineering Consulting, are no different. A few years ago, I paid $185 per hour to a therapist just to talk through depression. There was no quote, just an undefined journey. It cost a lot, but the outcome was life-changing.
Imagine if I had chosen a cheaper therapist. The outcome could have been disastrous. This illustrates a key point: when you purchase professional services, including Structural Engineering Consulting, you are buying a product.
This product can be cheap or high-quality, fast or slow, but the ultimate value comes from the outcome.
I paid a large sum of money to a shrink several years ago. The rate was $185/hour, just to listen to me rant and cry my way through depression. There was no quote. It was an undefined journey and the only way to pay.
After several such hours, I was “fixed”. It cost a lot of money but I was saved ? My marriage was saved ?
Imagine if I had shopped around for rates. A mate might say
“There’s a bloke who charges $90/hr. Not sure what he’s like though.”
Imagine I go and see that guy, he’s useless, and my marriage falls apart…
My point is when you buy professional services YOU ARE STILL BUYING A PRODUCT. The product will either be cheap, or good, perhaps, but probably not, both. It might be delivered quickly, or slowly. But the outcome – the product of the service – is what you’ve ended up with.
Playing With Numbers in Structural Engineering Consulting
Let us break it down with a simple example. I am an engineer, so numbers make sense to me.
Engineer 1 – $135 per hour
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Designs a structure conservatively and quickly
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10 hours later, the design requires 10 tonnes of steel at $5,000 per tonne and 5 cubic metres of concrete at $1,000 per cubic metre
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Total structural component cost: $56,350
Engineer 2 – $200 per hour
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Designs the same structure with clever optimizations and risk management
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15 hours later, the design requires 8 tonnes of steel and 4 cubic metres of concrete
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Total structural component cost: $47,000
Although Engineer 2 charges more per hour and takes longer, the smart design saves the project $9,350. This is the tangible value of expert Structural Engineering Consulting.
Why Value Matters More Than Hourly Rates
This example shows that paying higher rates for Structural Engineering Consulting can save far more in project costs than you might imagine. Engineering may be a small part of the total cost, but it has an outsized impact on the outcome.
A bad decision or overly conservative assumption can cost stakeholders exponentially more than a few dollars an hour. That is why choosing the right provider is crucial.
The Difference Between Providers
Not all Structural Engineering Consulting services are equal. Some may be cheaper, others faster, but the value comes from expertise, insight, and careful design. Clients who understand this see the benefit of working with a trusted consultant and experience real savings and risk reduction throughout their projects.
The Race to the Top
There is always the temptation to cut corners to win a bid. In the race to the bottom, you might win a small short-term gain at the expense of long-term results.
The race to the top is different. It focuses on design excellence, respect, innovation, sustainability, and generosity when it is easier to be selfish. It is risky, challenging, and requires effort, but the long-term outcomes are worth it. In Structural Engineering Consulting, the race to the top leads to safer, smarter, and more cost-effective projects.
Stop Paying for Cheap. Start Investing in Value
If you want your projects to truly succeed, the choice is clear. Working with the right Structural Engineering Consulting team can:
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Save money through smarter design
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Reduce risk on-site and throughout construction
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Deliver superior outcomes you can rely on
Book a free consultation today and discover how smarter decisions in Structural Engineering Consulting can lead to better, safer, and more cost-effective results for your next project.
