Hello older professionals.

Back in the day, professional civil engineering consultants rates used to be calculated as multipliers of salary. Days long gone now.

I'm wanting to review our company performance against old multipliers, but I cannot remember what the multiplier was, or to what number it was applied...

As a clue, I 'think' it was applied to basic, headline employee salary, and I think it had a value of 1.8 for a simple return of all costs, and a top value of er, dunno. 2.4? 3.2?

Any memories or links gratefully received.

Hi Mr Magnolia (any chance of a proper name by the way. Even if it's only a first name ?)

I'm a retired QS and, over the course of my professional career, have used various multipliers, depending on the level of overheads. When preparing claims it was necessary to substantiate the level of overheads and 2.4 would be about right for a large company with significant head office overheads. For smaller one man bands, however, it could be as low as the 1.8 you mentioned.

These days I find it depends on who I am working for. Large multinationals get a higher multiplier than small private companies. I find the smaller companies come back for more, where as there is no customer loyalty in large companies, so I charge more.

Thanks guys.

Next question is whether the multiplier is applied to standard salary, or salary plus employers NI, pension etc.

My memory of things from the mid eighties is of the 1.18 being used for site/RE staff, where no element of profit was expected.

Cheers

Donald

Hi Donald,

Personally I have always applied a multiplier to 'Cost' which includes things like Pension, NHI etc. but excludes things like company transport or accommodation costs.

Thanks for that.
I'm trying to multiply as low a cost number as possible, as I am on a mission to demonstrate that really, we can afford to pay more to staff.