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<br><br><br> Debate on Fee Discounting<br><br><br><br> Disclaimer: The views on this debate are not those of CESA Board, Council or Management. CESA encourages the spirit<br> of constructive engagement in a quest to find lasting solution for our beloved built environment.<br><br><br><br> I am perplexed by some of the statements emanating from members regarding fee discounting. I personally prefer<br> to refer to them as fee reductions because they go hand in hand with reduced services. In my discipline fortunately<br> it is not as chronic as with civil engineers. I would like to point out a few issues which I trust the younger members<br> should objectively consider (they are not figments of my imagination they are real and anyone who says otherwise<br> is doing nothing more than fibbing to himself) I have gone past my sunset years but they have a future to look<br> forward to.<br><br> Most civil engineering tenders attract fee reductions not uncommon of up to 80% of what we would term recommended<br> tariffs. If firms can support this sort of fee reduction only a few reasons apply:<br> Before the practice of reducing fees became standard practice (these comments apply to all disciplines the only<br> reason for using the civil engineering discipline as an example is that it comes more readily to mind)<br> Clients were being grossly overcharged (the difference between a 20% fee and a 100% fee is not trivial)<br> Clients were being provided with services that they did not need (paying for something that was not asked for<br> hence the reduced service provided now) alternately since fee reductions have become the norm:<br> Clients are being provided with a substandard service and although they expect an engineer to perform the work<br> in practice it is rarely even a technician who comes close to a project<br> There is no innovation and the same standard work is being rehashed over and over sometimes with the same<br> mistakes repeated ad nauseam<br> There is only one incentive and that is to increase the project cost, project savings if reflected in the fees will make<br> an already precarious situation untenable (so called value engineering is devoid of any value)<br> Many firms employ the most expensive REs they can find as the mark-up on the RE’s costs basically defines<br> whether a project breaks even or not<br> REs perform many (sometimes most) of the engineer’s tasks (site measurement, detailing, minutes, etc.) and<br> Clients are effectively paying for the engineer’s work twice or paying for a service they are not receiving from the<br> engineer but from someone who is employed by them (the RE is for all intents and purposes an employee of the<br> Client)<br> The number of disputes due to the failure on the part of engineers to administer contracts properly is increasing<br> notwithstanding that most of them never see the public domain as they are resolved by mediation, adjudication<br> or arbitration with<br> Clients unable to determine if a dispute arose as a result of the engineers’ blameworthiness/fault or not (a<br> large proportion of Clients are inadequately qualified to understand some of the nuances of contract law and<br> consultants get away scot free when they should be paying for the costs of remediation)<br><br> The list goes on, which for those who are looking forward to a future in the business of consulting engineering<br> should be a serious concern. I am sad to say that increasingly there seems to be little future in this profession<br> notwithstanding that I am extremely disappointed to see the direction in which it is heading after having proudly<br> dedicated the best part of 30 years to it. Consulting engineers should be the engineering Rolls Royce not just<br> people plodding along doing a job of work commensurate with the fee they are being paid. At this juncture I see our<br> business (that of Consulting Engineering) pretty much as an old building in decay. The odd cornice is falling off, paint<br> and plaster is peeling off and the walls are starting to crack and give, but the building still stands giving us a false<br> sense of security until one day it will all be too much and it will eventually crumble under its own weight. Desperate<br> times need desperate measures, please put the engineer back into engineering before it is too late to remedy the<br> status quo.<br><br> Michele Rivarola PrEng PrCPM BSc (Eng) EngPEUR FAArbSA<br> MAFSA MSAIMechE MSAIRAC MSAMA MCorrISA MSAFHE MASHRAE MNFPA MFPSA<br><br><br> Response from Stephan Vermaak<br> Mike, I’m not sure where you a residing, but I would certainly like to have a coffee sometime and have a chat if<br> you will. I cannot agree with you more, as we as consulting engineers have lost serious territory on a number of<br> aspects within our industry. I have about 25 years remaining in this ungracious industry where we are scavenging<br><br><br><br><br><br><br> 8<br>
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