Computer Pricing Practices

by Computer Practices Committee of the Technical Council on Computer Practices, ASCE

American Society of Civil Engineers, New York, NY
978-0-87262-516-7 (ISBN-13) | 0-87262-516-8 (ISBN-10), 1986, Soft Cover, Pg. 25
15x22.7cm, Second Edition

Manual of Practice No.: 59

Out of Print: Not available at ASCE Bookstore.

Document Type: Book - Manual of Practice

Abstract: Civil engineers have become increasingly involved with the use of computers to help solve engineering problems. Many problems that previously could be solved only approximately, or that required a tremendous number of man-hours, now can be solved quickly and directly through the use of computers. As a result, civil engineering organizations have become increasingly concerned about how computer-related costs fit into their over-all pricing policies. To bill for engineering services on cost-plus-fee contracts, a pricing policy is mandatory. For lump-sum or percentage of construction cost contracts, a pricing policy assists in the determination of an equitable price. For management purposes, in all organizations, a pricing policy serves as a cost control guideline. Owing to rapid changes in computer equipment and the availability of computer software, computers have become more economical to purchase and use. Usage has become more widespread, sophisticated, and complex. Establishing satisfactory computer-usage charging policies has become more difficult. While clients will have the benefit of quicker, more accurate, and more comprehensive solutions to problems, the firm providing them needs to be adequately compensated for the value of its work. Adequate compensation becomes more imperative when engineers contract with governmental clients that fix a low overhead percentage. This manual presents a clear statement of pricing practices for computer services and computer-aided services, along with alternative pricing methodologies for computer services that the firm can use and the client can understand. Examples of pricing methods are given.

Subject Headings: Pricing | Client relationships | Computer aided operations | Business organizations |


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