Consulting services normally come with a price premium because they grant access to the knowledge of experts, on demand and with the exact time commitment needed by the client. The alternatives to hiring consulting services are to train specialists in-house, which requires plenty of time; or hiring experts full-time, which is not always cost-effective.
Of course, this doesn’t mean consulting services should be overpriced either. Consulting firms and their clients can both take steps to optimize costs, making sure that the business relationship is mutually beneficial.
Consultant rates are often viewed as expensive, but it’s important to consider they have operating costs that are assumed by the hiring company in the case of employees. Nevertheless, there are many ways in which consultants can lower their rates without sacrificing their profits.
Engineering consulting is a type of business, even if the consulting firm is composed of only one individual! This means that consultants also require legal, accounting, financial and tax preparation services to operate. These areas are all out of the engineering field, and therefore consultants must rely on the services of other professionals.
For larger consulting firms, it can make sense to have a full-time staff to take care of supporting business functions. However, outsourcing is normally a better choice for smaller companies and freelance consultants. The benefits for consulting firms who outsource these support processes are very like those they offer to their clients.
A consulting contract can be considered a project, even if construction or MEP installations aren’t involved directly. This means that best practices in project management that apply for contractors can also be implemented with excellent results in consulting.
The Project Management Book of Knowledge, published by the Project Management Institute, provides excellent guidelines and best practices in the field of project management. Companies form all areas of engineering, including consulting, can achieve excellent results by implementing a solid project management framework.
Since consultants are not part of the organization that hires their services, they don’t have access to all the information required for carrying out their work effectively. Their work may also involve accessing areas that are not open to the public, and someone from within the organization may have to assist them.
To avoid downtime once the consulting service is being carried out, consultants must make sure to provide a list of requirements in advance. This may include information and documents such as:
Requesting this information on-site can be disruptive for the consulting service, causing a waste of time for both parties involved.
There are also many ways in which clients can reduce engineering consulting expenses. The following are a few recommendations.
If consultants must assume travel and lodging expenses to provide their service, their rates are increased significantly. Therefore, it is recommended that companies hire consulting services locally whenever possible.
When hiring a consulting firm from another city or country is necessary, clients should make all the necessary preparations for them to deliver their service with one visit. Reducing travel expenses allows consultants to charge less for the total project.
Consulting is characterized by having an open approach, where there may be many alternatives to solve a problem. However, consultants can be more effective if the scope of their work is defined clearly by the client – engineering is an extremely broad topic. For example, the skillset of a consultant specializing in chilled water plants is very different from that of a consultant specializing in solar power; a consulting firm can send the best team according to your specific needs if you state them clearly.
Although engineering consultants are experts in their respective fields, clients should keep in mind that they are not company employees, and the information they require to carry out their job may not always be available to them. Also, there may be cases when they must access areas of the building that are locked away from public access.
Consultants may charge for their services by the hour, or a fixed price may be agreed by both parties involved. Each type of contract has advantages and disadvantages:
Clients can protect their budgets by negotiating fixed-price consulting projects whenever possible, but they must keep in mind that consultants may not be willing assume a fixed-price contract if it involves many unknown variables. Regardless of the type of contract, effective communication is key for the consulting service to be carried out without hurdles.
Engineering consulting services don’t have to be excessively expensive, and both consultants and their clients can take measures to optimize cost. Consultants can use outsourcing and best practices in project management, and their clients can make sure to provide all needed assistance for the consulting service to be completed without delays. Of course, work is simplified if both parties are clear and effective in their communication.