Why Do Consultant Engineer Cost More?by Sarah Peter Contributor
An Engineering consultancy in the UK may appear to be expensive due to full-time employees hired on the per-hour rate. Nevertheless, the additional cost is also involved in every project signed under the contract – this expense is likely to be higher than an employee. Despite the expense, consulting service is a better option rather than considering the financial aspect. For example, companies pay for an individual employee for traveling and lodging expense but consultants charge for each hour while offering their services.
Let’s see the factors that drive up the cost of Engineering Consultancy in UK.
· Consultant Engineers pay their own taxes – Although employees hired by the company also have their employees included in the tax bracket but the company hires to take care of their tax payment and management. For consultants, it’s not a similar case. They’ve to pay their taxes personally and must have to include their per hour wage in their tax return. If you hire an engineer may cost you cheaper in terms of net hour wage. However, consider the taxes that will be imposed on the company and you hired an employee.
1. Pay their taxes
2. Administration cost linked with tax calculation and filing, plus the payment cost of processing.
· Consulting Engineers have their own equipment – every consultant requires a computer for work, as well as measurement equipment, are also required for various reasons. Moreover, in other fields of engineering its necessary to purchase expensive software – for MEP design and energy modeling are two examples and there are many others.
Laptops and workstations are affordable but the advance equipment required for consulting is not affordable to many companies. For example, thermographic cameras and power quality analyzers are generally used for energy audits and why the company would purchase for just a single time use that may cost them thousands of dollars. Even for internal audit, the company prefers to take on rent rather than purchasing the expensive device. Taking from consultants, it will charge you for the device per-hour rate. An important thing to remember is if the equipment is damaged, the owner will expect the cost of new equipment to be paid.
· Consulting Engineer rates are hiked if there are traveling expense – consultant normally travel for a company that has its offices in multiple countries, the expense is obviously bared by the company hiring its services. If your employee travel’s, the expense bared by the company but the consultant pay for these expenses and added in the project budget because the traveling is added in the cost of serving the client. For this reason, hiring engineering consultancy in UK is simple and effective strategy to minimize the cost.
Even for local consultants, keep that in mind the following expenses are covered by the companies taking their services:
1. Medical coverage.
2. Work vehicle, plus maintenance and monthly fuel expense.
3. Smartphone, plus its operating cost.
· Companies can save talent development by hiring consultants – an engineer must have accumulated experience and vast knowledge to call themselves consultants. It’s better to hire a full-time employee that is trained under internal consultant but there’s a fear to lose the valuable employee in the future. A consultant is expensive, but the expertise is guaranteed and loyalty with the client is unquestionable during the service of contract.
· Consultants have no downtime – companies hiring professional consultants on their payroll have to pay monthly salaries during the time when the workload is inadequate. Beside it, consultant charges per hour, but employees have a different case. Moreover, employees are paid for sick and vacation leave, while the consultant doesn’t get any wage for the time they’re not working.
· Engineering consultants depend on the services of other professionals to operate – make no mistake, Engineering consultancy in UK has tax and legal obligations, similar to other businesses. In the case of employees, these costs are assumed by the company hiring them.
Created on Oct 29th 2019 07:46. Viewed 149 times.