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CADD: Getting the Right Fee

by Francis Connell, (F.ASCE), Pres.; McFarland-Johnson Engineerings, Inc., Binghamton, N.Y.,


Serial Information: Civil Engineering—ASCE, 1984, Vol. 54, Issue 10, Pg. 36-37


Document Type: Feature article

Abstract:

For those engineering consultants who use CADD systems on government cost-plus fixed-fee contracts, the author sugests establishing a CADD cost center that includes all costs involved in maintaining a CADD operation. This should get you the best revenue return on CADD. Also, he advises thinking in terms of total cost, trying to eliminate maximum limitations on percentages of overhead, and convincing clients that there are sufficient controls on costs to assure auditors of the reasonableness of charges for engineering services.

Subject Headings: Computer aided design | Benefit cost ratios | Consulting services | Systems engineering | Revenues | Professional services | Government

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