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Rates For Service Engineers

10/27/2011 9:59 AM

A company I do some work for is currently looking into contracting a service engineering organization to provide service cover for machinery (electro-mechanical systems used in laboratories) in various parts of the world, particularly North America and Asia, but could be more-or-less anywhere.

I'd be grateful if some of you out there could give an idea of the sort of hourly rates and/or yearly contract fees they'd be expecting to pay.

Anonymous replies are fine, but please give an idea of the field of operation of the engineers you're talking about and no BS please . Feel free to pm me if you'd rather.

With thanks in anticipation ...

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#1

Re: Rates For Service Engineers

10/27/2011 11:06 AM

Anywhere between 50 USD and 500 USD per day, plus travel, accommodation, medical insurance and expenses. It depends on the difficulty of the job.

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#2

Re: Rates For Service Engineers

10/27/2011 11:41 AM

From my knowledge and personal experience here in the U.S. involving most types of electrical, mechanical and software engineers:

A couple of years ago I would have said the typical hourly rate is $100 to $200 per hour, depending on the difficulty of the work to be done and the availability of experienced engineers who could do the job. If the job requires a technician rather than an engineer the hourly rates would have been less, perhaps 50 to 80% of the rate for an engineer. In the current state of the economy, though, you could probably find qualified people willing to work for substantially less than those rates.

In addition to the hourly rate, you might have to pay a per diem for daily living expenses, which would be negotiable and would depend on whether the engineer can easily commute to the job site from his home (= low or zero per diem) or whether the engineer has to stay at a hotel/motel and eat meals at restaurants ( = higher per diem). Travel costs would be a similarly negotiated. The U.S. government has a set of tables for 'allowed' per diem rates that they will allow companies to expense when doing work for the federal government. You could probably find these tables on-line and use them as your basis for negotiating per diem costs.

Ordinarily, health expenses and taxes are the engineer's responsibility. If he is a sole contractor he pays them himself. If he works for a service outfit, they might pay his taxes. Usually he still pays his own health insurance.

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#3
In reply to #2

Re: Rates For Service Engineers

10/27/2011 12:48 PM

I would have to comcurr with that.

I like to add, it has been awhile, but there was also an up front charge of $2500.00 plus expenses.

This $2500.00 and expenses charge was nogotiable if it was near their office.

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#4
In reply to #3

Re: Rates For Service Engineers

10/27/2011 4:48 PM

Thanks to all so far.

Is that $2500 a one-off set-up charge, or annual?

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#5
In reply to #4

Re: Rates For Service Engineers

10/27/2011 5:35 PM

it was a one off. At the time I thought it was pricey and it was but still worth it putting back on line. But we needed them. As it turned out, the last time we needed them, I called, response was, they would here tomorrow. Tomorrow never came. The third day, I did the servicing myself. One year later they were out of business. Look at the value of the unit being taken off line for service, this helps.

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#6

Re: Rates For Service Engineers

10/27/2011 7:01 PM

You may have already done this:

  1. [PDF] Service Engineer Rates - UKwww.ddjgraphics.com/pr/serviceletter.pdfFile Format: PDF/Adobe Acrobat - Quick View
    D5 WHITWOOD ENTERPRISE PARK. SPEEDWELL ROAD,. CASTLEFORD. WEST YORKSHIRE WF10 5PX. Office Tel: 01977 668986. Facsimile: 08707 ...
  2. labour rates for service engineers 2011 pdf free ebook download ...Consulting Engineering Services Price Index (CESPI)

  3. [PDF] GUIDELINE FOR CALCULATING AN HOURLY CHARGE OUT ...www.apeg.bc.ca/ppractice/.../guideline_for_calculating_hourly_rate...File Format: PDF/Adobe Acrobat - Quick View

  4. [PDF] M&E Services Engineers Feeswww.feesbureau.co.uk/i/reports/MEsample.pdf
  5. Service Engineers Limited, Engineers - General in Glenfield, North ...www.finda.co.nz/business/listing/y2cm/service-engineers-ltd/Learn more about
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#7

Re: Rates For Service Engineers

10/27/2011 11:46 PM

Yes, a stiff up front fee, plus daily expenses, travel, etc.

They have to calculate, what their problem is worth in loss of productivity (and that is a lot).

You have to calculate to keep alive in style inbetween, plus keeping yourself on the bleeding edge, to be in demand.

I cannot do either for your profession, but, you can sit down and do it. After a few iterations, that is.

Go for it, Man!!

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#8

Re: Rates For Service Engineers

10/28/2011 2:11 AM

I have following experience about service charges for engineers from Europe for Asian countries:

1. Standard charge about 125 Euro per hour for 8 hours in day time (1000 Euro per day). It varies depending on level and country. Over time beyond 8 hours or night work or Sundays are charged 25% more. Holidays are charged 50% more.

2. Counting the days to be charged starts from the day engineer leaves headquarter. Travel charges are extra. Some organizations charge mobilization allowance in place of it for each thoroughfare.

3. Insurance and taxes in engineer's country is included in charge rate, but taxes in customer's country are generally on account of customer.

4. Emergency medical aid, local transport, lodging, boarding and other logistics on customer's account.

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#9

Re: Rates For Service Engineers

10/28/2011 5:25 AM

Chaep="Have fun storming the castle".

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#10

Re: Rates For Service Engineers

10/28/2011 6:28 AM

Thanks again to all.

Just to clarify, I'm not going to be doing this servicing work myself unless there's a catastrophic breakdown (tho' I'll probably be doing the installation and commissioning).

We're currently negotiating with a client to whom we hope to supply the equipment, and they want (quite reasonably) to know how we intend to provide service (both in and out of warranty) and how much it is likely to cost after the warranty period.

The actual locations in which the equipment will be installed is not yet known.

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