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motomoron
motomoron Dork
6/26/12 3:50 p.m.

I recently declined work from a client that I'd been billing $150/hr for design engineering + fabrication of prototypes for rapid-deployable renewable energy products for the military. I was initially approached by them when they got a 7-figure contract to deliver hardware in about 4 months and realized they were berkeleyed w/o someone who'd done it before.

I provided my regular boilerplate contract but the owner of the company (an attorney) insisted on using his, which had a 6-month "use it or lose it" clause - in my favor. I did about 70 hours of work over the first couple months, then they disappeared into the morass of vendor management and forgot to call.

When the 6 months date was looming I emailed and left voicemails for the engineering manager that their contract was about to come due, and if they had about 30 hours of work I could see fit to let the term run on a bit as a kind gesture.

No reply. I email again. No reply.

10 days after the contract expires I get a call from an old colleague who works there asking about whether I'd consider extending their term. I asked that he relay to the engineering manager that I'd tried repeatedly to do just that, and that inserting a friend and colleague with no part in the discussion into the matter as a human shield was not cool. Also, I sent an invoice for the balance of the contract.

She called a week later - and conferences my friend + former colleague into the call! I was prepared to discuss the matter with an open mind until she suggested "I'd hoped we'd have a longer relationship".

I offered that I was following the precise terms of the contract they gave me, and that my adherence to the contract thus far as well as the work I'd done had been meet with nothing but the highest approval. I also told her directly that involving my friend and former colleague in her negotiation was unfair to him, and in fact sealed my decision to bill the balance of hours.

So a couple months elapse and I get a call. They've dicked around with a design for a simple product for months, and need a prototype for a trade show - ready to ship - in less than 72 hours.

I spent 2 days I had off my day job designing the parts, sourcing materials and having them overnighted in, machining the parts, building out the prototype, painting it, and delivering it.

A few weeks later they call wanting 3 more assemblies which I qoute, and negotiate to make from less expensive materials - again on a crazy deadline. On a verbal PO I rush order materials and block in time for the work, As I'm getting started I get a cryptic voicemail asking for a "hold on the parts" .

I try for 2 days to reach the guy, and when I do he asks me to suspend work, then we have an odd and unclear conversation about what it was I was doing, and how they'd like me to start over but with their design.

And I realized I make enough at my day gig (contract instrument designer-fabricator for NIH) that I need the time more than I need their money and crazy-deadline horsesh1t.

And for the first time in my life quit a $150/hr job.

Conquest351
Conquest351 Dork
6/26/12 4:29 p.m.
pete240z wrote:
tuna55 wrote: I don't particularly trust them....
Life is too short. You are too busy. Walk away.

Looks like ol Pete240z was right! Crazy story man!

tuna55
tuna55 UltraDork
6/26/12 4:59 p.m.
Conquest351 wrote:
pete240z wrote:
tuna55 wrote: I don't particularly trust them....
Life is too short. You are too busy. Walk away.
Looks like ol Pete240z was right! Crazy story man!

Methinks you got a couple of us mixed up

pres589
pres589 Dork
6/26/12 6:27 p.m.

This thread has me wondering what normal contract engineering work pays, gross, per hour. Probably has so many variables to the question that it's almost not worth worrying about at this time.

tuna55
tuna55 UltraDork
6/26/12 6:28 p.m.
pres589 wrote: This thread has me wondering what normal contract engineering work pays, gross, per hour. Probably has so many variables to the question that it's almost not worth worrying about at this time.

We worked with a local engineering firm who charged something like $125 for jobs where it was time & materials - good place, too. If you're a big shop, you may quote higher. The Notified Body (Euro compliance stuff for pressure equipment) we use at work charges something like $250.

sobe_death
sobe_death Reader
6/27/12 11:56 a.m.

I know that most things are "who you know", but how exactly does one get into consulting engineering? or whatever you're doing?

My current engineering manager has no issues with me doing extra work on the side as long as it's not taking business from them, and I have a surplus of free time I'd be willing to fill up a little bit.

tuna55
tuna55 UltraDork
6/27/12 12:45 p.m.
sobe_death wrote: I know that most things are "who you know", but how exactly does one get into consulting engineering? or whatever you're doing? My current engineering manager has no issues with me doing extra work on the side as long as it's not taking business from them, and I have a surplus of free time I'd be willing to fill up a little bit.

Didn't burn any bridges with an old employer and left with tons of specific knowledge that nobody else wanted despite my best attempts.

tuna55
tuna55 UberDork
2/5/13 7:16 a.m.

2012 done. $13K gross. With a schedule C the government wants about $4500 of it. I need more expenses.

wbjones
wbjones UberDork
2/5/13 8:05 a.m.

wouldn't that just even out in the end ... you have more expenses = you spend more money = you pay less taxes...

you have less expenses = you spend less = you have more money = you pay more taxes....

pinchvalve
pinchvalve UltimaDork
2/5/13 8:34 a.m.

$175 an hour? Why even get out of bed for that? What is that, like double minimum wage or something? My side gigs pay an average of $10,000 an hour. If I were you, I'd look into contract killing. The pay is much better!

tuna55
tuna55 UberDork
2/5/13 8:51 a.m.
pinchvalve wrote: $175 an hour? Why even get out of bed for that? What is that, like double minimum wage or something? My side gigs pay an average of $10,000 an hour. If I were you, I'd look into contract killing. The pay is much better!

well, if you want to get right down to it, tax that hourly rate by 1/3, then I spend 1 hour round trip in the car getting there, and most jobs are two hours or less. So you can knock that hourly rate down by 1/3 again.

SVreX
SVreX MegaDork
2/5/13 10:07 p.m.

You need an employee, for more deductions.

I am available.

That way, you can bill TWICE as much!

tuna55
tuna55 UberDork
2/6/13 9:00 a.m.
SVreX wrote: You need an employee, for more deductions. I am available. That way, you can bill TWICE as much!

Tempting.

Unfortunately, I'm like the only guy that can do this particular job because my previous employer brilliantly had me design this piece of equipment, took away the resources we had to document the software, wouldn't let me train anyone on the hardware, and then walked me out when I gave my notice. I am cheap considering that!

SVreX
SVreX MegaDork
2/6/13 9:53 p.m.

Which is precisely why I wouldn't choose to be employed by anyone lesser than yourself!

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