Questions about Engineering:

• What is an engineer anyway?
• When do you have to hire an engineer?
• How do you go about selecting an engineer?
• How are fees set?
• What is included in the fee?

WHAT IS AN ENGINEER ANYWAY?

No, its not someone who drives a train.  An engineer is a professional who, by virtue of his or her educational and experiential training in math, physics, chemistry and engineering sciences, is qualified to apply this training to solving real world problems.  Engineers are licensed to practice on a state-by-state basis but every state and some municipalities require engineering licenses.  It is illegal in most states to call oneself an "engineer" or use the variants of the term "engineer" (engineering, engineers, engineered, etc.) if a registered professional engineer is not an active, daily participant in the business.

WHEN DO YOU HAVE TO HIRE AN ENGINEER?

Local and state building codes require engineering licenses and seals for any construction plans, specifications and certain reports if projects reach a certain size. For example, in Texas, the Engineering Practices Act does not apply to 

  . a public work that involves structural, electrical, or mechanical engineering and for which the contemplated expenditure for the completed project does not exceed $8,000.
 . a public work that does not involve structural, electrical or mechanical engineering and for which the contemplated expenditure for the completed project does not exceed $20,000; and
 . road maintenance or betterment work undertaken by the commissioners court of a county.

HOW DO YOU GO ABOUT SELECTING AN ENGINEER?

Of course the best method is by referral.  The myth says all engineers are alike but the reality is that engineers are as varied as lawyers or doctors or other professionals.  Some you can work with, others you wouldn't want to. Some are expensive and others are not so expensive.  Just because many engineers receive much the same academic training, the experience level varies considerably.  If you are not careful, your project could end up a training ground and you could be paying for the engineer's education.  Go for experience!

Most states have adopted a statute prohibiting bidding for professional services at least for public works, schools and similar public entities.  Texas, for example, has statutes that require government entities to solicit for qualified engineers and rank respondents on the basis of qualifications and experience.  Once a selection is made, the parties negotiate a fair fee for the work scope.  In the unlikely event they cannot reach agreement on the fee, the entity goes to the second ranked respondent and so on.  Instances where the parties cannot agree on fee and scope are very rare indeed.  By the way, this prohibition against bidding also applies to requests for hourly rates and similar subterfuge if the intent is to award on the basis of low bid.  Engineers know these laws and are behaving unethically if they agree to submit a competitive bid. They can lose their licenses or be subject to reprimand or fines if they violate this provision in the law.

In Texas at least, private parties can and do request bids for engineering services and where the scope of services to be provided by the engineer is very definitive and where the owner is known in the community to be reputable most engineers will not hesitate to provide a quotation.  Every project owner should be aware that the pitfalls of taking low bids for construction equally apply to engineering:

 . The low bidder usually will have made the most mistakes in his bid
 . The low bidder will usually need the work more
 . The low bidder may be prepared to challenge you on the scope of work and demand extra compensation for what you left out of the bid.
 . And, the low bidder may be planning on cutting costs by using less experienced personnel.

HOW ARE FEES SET?

Engineers work on just about every basis for fee there could be:

 . Cost plus a fixed fee
 . Cost plus a percentage of construction cost
 . Percentage of construction cost
 . Fixed fee

Percentage of construction.  I daresay most architects and half of all engineers probably work with percentage of construction cost.  The advantage is that the fee goes up when the work becomes increasingly complex.  This method is particularly advantageous for projects where the scope of the project is not clearly defined and won't be defined until after the engineer has done a significant amount of work, for example, preparing opinions of cost and analysis of alternatives.   The disadvantages are 1) lack of incentive on the engineer's part to save the owner money; 2) the actual construction cost may rise and fall seasonally and certainly with economic cycles; 3) the construction cost may actually have little to do with the engineer's work.  Let me cite some examples. 

Where is the incentive to save the owner money if for every labor saving or cost saving idea the engineer uncovers he loses say 8 percent?  On a related issue, the most common complaint I here from owners is the designer being entitled to more fee due to change orders!

We've seen recent prosperity in the construction industry lately.  Costs for concrete have risen here in Texas by over 22% since January, 1998.  Therefore, an engineer's fee for the very same project could be appreciably more or less depending on the bid date, season of the year, availability of bidders, and economic boom or bust cycles.

And finally, in some instances a designer may only refer to some product or standard and collect a fee.  In the extreme, I have actually been approached by companies who will provide all details and drawings to a design engineer for their equipment for free hoping the engineer will incorporate these proprietary items into the bid thereby locking in the supplier.  Cost to the engineer . . . zip!  Fee to the engineer?  Who knows.  By the way, I do not know of scrupulous engineers who allow this practice to this extreme.  Most earn their fee by checking out the alternative products and writing their own specifications.

Fixed fee.  When the scope of work is clear, most engineers will not hesitate to negotiate a fixed fee.  However, the fee is tied inextricably to the scope.  If the scope changes . . . so does the fee!  The advantage to the owner is clear 1) advance knowledge of his professional fees for budget purposes and 2) a very clear definition right up front of the scope of the project.  Likewise, if there are any ambiguities in the scope of work, the engineer will likely "pad" the fee just a little to cover himself and well he should!  The disadvantages are that the engineer may understate the fee for whatever reason and find himself over a barrel, out of money, and months to go before the project is complete.  An ethical engineer will simply take his medicine and furnish the services to which he agreed.  Sometimes you eat the bear. . . sometimes the bear eats you!

Generally for budgeting purposes, engineering services will run between 7 and 9 percent of the construction cost.  Generally, fees are cheaper on larger projects, more expensive on smaller projects. An exception, though, is when the project is small but the design must be very complex. Fees of 12 percent would not be unusual in this case. 

WHAT IS INCLUDED IN THE FEE?

Whatever you want included!  Well, maybe not everything.  Generally, the engineer will include as basic services his design broken down into preliminary engineering, design, bid and contracting, and construction phase services.  Be aware that most engineers consider the following items as additional services and NOT part of the basic fee unless you negotiate otherwise:

 . Surveys for data collection; topo surveys; boundary surveys; deed research and other surveyor work (though some engineering firms have their in-house surveyors).
 . Borings, soil tests and other geotechnical testing and reporting
 . Fee audits, rate analysis and similar accounting work.
 . Sometimes plan and specification reproduction is not included for bidding purposes.
 . Materials testing and quality control and assurance testing by a lab.
 . Services of a full time, resident project inspector or representative.
 . Preparation of operations and maintenance manuals for the project beyond assembly of the submitted documents from contractors.
 . Serving as expert witness with respect to the project.
 . Preparation of permits or licenses or applications for funding.

If you have any questions concerning hiring an engineer, visit the National Society of Professional Engineers at their website, e-mail Anne Easterling of the NSPE or call or e-mail me, Terry Brannon, PE.