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        <div id="content-top1">Page 8 - index</div>
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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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