LATEST NEWS Trade Contracting
May 29, 2008
Billing rates at U.S. architecture, engineering firms remain stable
ZweigWhite’s survey finds rates rose only slightly over past year
Billing rates among U.S. architecture and engineering firms increased only slightly over the past year, a newly released report shows. According to ZweigWhite’s 2008 Fee and Billing Survey of Architecture, Engineering, Planning and Environmental Consulting Firms, billing rates across the 29 employee positions reviewed for the report rose an average of 1.5 per cent in the past year, and 19.7 per cent since 2004, which equates to a compounded annual growth rate of 4.6 per cent over the five-year period.
“Over the same five-year period, inflation rates in the U.S. have averaged about 2.8 per cent, so at face value it would seem that architecture, engineering, and environmental firm fees have experienced real growth of about two per cent a year,” says Ian Rusk, a financial consultant to the industry and head of ZweigWhite’s advisory services division.
“But inflation has been rising while billing rate increases have been falling. Since November of 2007, the U.S. inflation rate as measured by the consumer price index has been hovering at approximately four per cent, so a billing rate increase of only two per cent means we’re swimming against the tide, and the tide is winning.”
According to the survey, as a group this past year, civil, structural, mechanical, electrical, and process engineers’ billing rates fell an average of 2.2 per cent, while rates among firms’ top management — project managers, department heads, associates, senior associates, and principals — increased an average of 4.3 per cent.
Other findings from the survey show 77 per cent of firms update their billing rates annually, while another 13 per cent do so every two years.
Chicago-headquartered ZweigWhite provides management consulting and other services for the design and construction industry. It has additional offices in Natick, San Francisco and Washington, D.C.
DCN NEWS SERVICES
|MOST POPULAR STORIES|
- Lafarge’s research tackles cement’s “bad boy” image
- Waterloo Region LRT work agreement almost done
- RFP released to shortlisted teams for Milton hospital expansion
- Upset waters over new Ontario diving regulations
- The Working Dead — construction of a post-apocalyptic zombie world
- 20 Most Popular Stories
|TODAY’S TOP CONSTRUCTION PROJECTS|
These projects have been selected from 371 projects with a total value of $1,936,826,394 that Reed Construction Data Building Reports reported on Thursday.
$134,000,000 Toronto ON Prebid
$128,250,000 North York ON Prebid
$100,000,000 Toronto ON Prebid
- Debate swirls over OCOT’s merit on its anniversary
- WaterGarden Worker
- Ontario to invest in cycling infrastructure
- U.S. construction labour concerns
- Compulsory certification in carpentry a “job killer”, says Kenney
- CaGBC to provide free LEED registration and certification for commercial projects in disaster-hit cities
- Economic cost of weather catastrophes is under appreciated: report
- Scotiabank sees slow growth in housing
- Photo Gallery: 2014 ACEC BC Awards of Excellence winners
- Journal of Commerce Preview for the week of April 21st, 2014
- Making Metro
- Crumbling roads a key election issue
- Early stages of concrete pump operator certification being developed in B.C.
- Legal battle over temporary foreign workers heats up
- Dive tower pushes formwork forward
- Understanding municipal strategy
- Calgary firm fined $35,000 for workplace injury
- B.C. labour minister calls for WorkSafeBC reforms
- B.C. prison proceeding