Welcome Guest! The IOSH forums are a free resource to both members and non-members. Login or register to use them

Postings made by forum users are personal opinions. IOSH is not responsible for the content or accuracy of any of the information contained in forum postings. Please carefully consider any advice you receive.

Notification

Icon
Error

Options
Go to last post Go to first unread
Safety Man 1  
#1 Posted : 08 May 2014 21:00:36(UTC)
Rank: Super forum user
Safety Man 1

Hi All Can anyone give me advice on the going rate to charge for RAMS. The RAMS I am producing is about 7-8 pages
firesafety101  
#2 Posted : 08 May 2014 21:13:55(UTC)
Rank: Super forum user
firesafety101

How about your hourly rate?
Safety Man 1  
#3 Posted : 08 May 2014 21:16:57(UTC)
Rank: Super forum user
Safety Man 1

FireSafety 101 What is the going hourly rate I was thinking of £25 a hour is that the going rate
paul.skyrme  
#4 Posted : 08 May 2014 22:55:27(UTC)
Rank: Super forum user
paul.skyrme

Safety Man 1, I don't know what your overheads are, but, a plumber would be charging around £25 per hour plus, so I would say it should be higher than that. I know what my company charges per hour and it's more than that!
boblewis  
#5 Posted : 09 May 2014 00:04:37(UTC)
Rank: Super forum user
boblewis

One always has to go by the time taken and I have to say for a chartered person a charge of less than 60-100 per hour as a consultant is around the bottom end but it does also depend on your business model and client base. For some clients before I retired I charged out around 200 per hour, or 1000 per day. You must look at your own charging structure Bob
bob youel  
#6 Posted : 09 May 2014 07:10:54(UTC)
Rank: Super forum user
bob youel

Safety Man Listen to the posts herein as its very good advice and I note that there must be some cheap plumbers about at ~ £25.00 per hour?! I do not doubt your competence with regards to occupational health and safety but I would re-evaluate your business model and business risk profile noting that should somebody follow your RAMS (Personally I do not like the term RAMS as I would not join such areas directly together) and something happened you and your business may be held liable!
JJ Prendergast  
#7 Posted : 09 May 2014 09:03:41(UTC)
Rank: Super forum user
JJ Prendergast

Please put me in contact with the plumber who only charges 25/hr!! The last time I called a plumber - about 2yrs ago, I got charged £65/hr - and thats in the north east of the UK. Why do h&s people value their work/charge rates so low? SUggest a bit of market research is required, look at recruitment websites for the rates paid by them, to safety contractors. I think boblewis is in the right area
firesafety101  
#8 Posted : 09 May 2014 15:38:54(UTC)
Rank: Super forum user
firesafety101

Safety Man 1 I do RA/MS for some contractors and keep it reasonable because they keep coming back for more. As Bob says split them into RA and MS because they are different. Depending on the size of the job I usually charge £150.00 for about two hours work. This I believe is reasonable because it is all at the PC and I have the templates. What suits me may not suit anyone else? I wish I had the courage to charge £1000.00 but I suspect the contractor would be off like a shot to find somebody else?
frankc  
#9 Posted : 09 May 2014 16:37:13(UTC)
Rank: Super forum user
frankc

FireSafety101 wrote:
I wish I had the courage to charge £1000.00 but I suspect the contractor would be off like a shot to find somebody else?
Bob did say that was what he charged. He didn't say the client paid it. ;-)
RayRapp  
#10 Posted : 09 May 2014 17:19:20(UTC)
Rank: Super forum user
RayRapp

I recall when I had my house surveyed some 20 years ago the surveyor charged me £75 an hour! However, he only charged me something like 4 hours for his time - still quite a considerable sum then. The premise is either charge what you are worth for your time, or what you think the client is willing to pay. Probably the reality lies somewhere between the two due to market forces. Too cheap and they will think not much of you...too dear and they won't come back.
boblewis  
#11 Posted : 09 May 2014 18:12:48(UTC)
Rank: Super forum user
boblewis

Frankc - Never had many problems with non payment but then I was very very careful accepting clients:-) You always have the 2 basic models of High volume and low price or Low volume and High price. Payment under the second model tended to be less of a problem. Bob
Zyggy  
#12 Posted : 10 May 2014 19:46:06(UTC)
Rank: Super forum user
Zyggy

Many years ago I was talking to a specialist lawyer about how much he was charging for virtually little effort. He stopped to consider this for a moment & then gave me a response that I sometimes still use to this day: " You are paying me for what I know......not what I do!" In my early days as a consultant I was even contacted by one client to complain that I had not charged them enough, & as with Bob, I have never had anybody quibble at my fees, but I do tailor them depending on who they are & what they want me to do.
JJ Prendergast  
#13 Posted : 11 May 2014 12:47:27(UTC)
Rank: Super forum user
JJ Prendergast

As per post #12, I quote this statement to my clients. Or 'what will it cost you, if you don't act on my recommendations?' I agree that the 'Low work volume, high price' consultancy model is best. Never had a problem with payment. Too many h&s cowboys working in the 'High work volume, low cost' model of consultancy.
JJ Prendergast  
#14 Posted : 12 May 2014 11:56:44(UTC)
Rank: Super forum user
JJ Prendergast

So lets play a little costing game, based on the original posting going rate of 25/hr Assume the original post is a self emploed consultant working via his own Lrd company, I estimate charing £25/hr would work out something like ... Hrs per yr = 1880hrs (47 weeks @ 40hrs week - assume you want a holiday?) Most consutants won't get paid for every possible hour, so assume payment for 75% of the hours = 1410hrs/yr 1410 x 25 = £35250 turnover HMRC will want about 25% of that (personal tax and Corporation tax) - £8812 approx This leaves £26437, then take off your overheads - fuel, insurance, computer supplies etc - say £4000 yr This leaves you with a salary nett of about £22500 per year. So h&s consultancy is well paid?? A simplistic calculation.... but really £25/hr!! Is that all h&s is worth to a client?
firesafety101  
#15 Posted : 12 May 2014 14:03:46(UTC)
Rank: Super forum user
firesafety101

Good post JJ however H&S is worth to a Client whatever that Client is prepared to pay.
JJ Prendergast  
#16 Posted : 12 May 2014 14:24:59(UTC)
Rank: Super forum user
JJ Prendergast

Or to take the other view - what the consultant is prepared to work for ..... I know I couldn't live off that sort of salary
JJ Prendergast  
#17 Posted : 12 May 2014 16:41:03(UTC)
Rank: Super forum user
JJ Prendergast

Post #1 might also like to consider - is this a RAMS document on a topic you have done before? Therefore you already have the knowledge, maybe you can use a previous RAMS to produce the document your client wants. Copy & paste from existing files etc - being realistic - that happens!! Or is it a totally new RAMS, you will need to set the document up, mabe time to research the topic and read any relevant guidance available from the HSE or other trade body etc. Extract relevant information etc. All needs factoring into your time required to complete the work for your client. Going back to the previous calculation - once you take your tax and costs off you are actually working for about £12/hr -which ends up in your bank account. 22500/1880 = £11.97/hr. I would go and be a postman or bus driver, if that was all I was earning in h&s.
frankc  
#18 Posted : 12 May 2014 20:34:20(UTC)
Rank: Super forum user
frankc

JJ Prendergast wrote:
Most consutants won't get paid for every possible hour, so assume payment for 75% of the hours = 1410hrs/yr 1410 x 25 = £35250 turnover HMRC will want about 25% of that (personal tax and Corporation tax) - £8812 approx This leaves £26437, then take off your overheads - fuel, insurance, computer supplies etc - say £4000 yr This leaves you with a salary nett of about £22500 per year. So h&s consultancy is well paid?? A simplistic calculation.... but really £25/hr!! Is that all h&s is worth to a client?
My accountant takes the overheads off my turnover first and then tells me the figure i have to pay HMRC by working out a percentage of what is left. Be a postman or a bus conductor, JJ but you'd be overpaid around £11.97 per hour if you became an accountant, imo. ;-)
firesafety101  
#19 Posted : 12 May 2014 21:29:02(UTC)
Rank: Super forum user
firesafety101

If you are not a high income earner you can do your own accounting, it is easy. If you don't have the time get the missus to do it and pay her, she probably gets most of your money anyway ;-)
JJ Prendergast  
#20 Posted : 12 May 2014 22:28:26(UTC)
Rank: Super forum user
JJ Prendergast

frankc It was a simplistic calculation, I did state that. The point was to illustrate that charging £25/hr leads to a pretty poor salary, if you are a self employed consultant.
boblewis  
#21 Posted : 13 May 2014 13:04:21(UTC)
Rank: Super forum user
boblewis

JJ I understand completely your point about a living income. However the basic point from any client perspective is "If I am paying peanuts then I am paying for a monkey to cover my back". Decent clients are looking to get good sound advice to manage their business better. This "cost means good" idea lies at the back of why directors listen more to expensive consultants who may be no better than in house staff. But to get to be a best consultant you need to offer more than just straight forward legal advice or basic documentation. You need an added value that puts you above the high volume businesses operating at minimum cost levels. Personally I think it a bad idea to get into writing any form of Risk Control statements without significant input from employees. Bob
frankc  
#22 Posted : 13 May 2014 21:55:41(UTC)
Rank: Super forum user
frankc

JJ Prendergast wrote:
frankc It was a simplistic calculation, I did state that. The point was to illustrate that charging £25/hr leads to a pretty poor salary, if you are a self employed consultant.
I know, JJ. That's why i quoted your previous simplistic calculation of £11.97 and added a wink. And it was free.
paul.skyrme  
#23 Posted : 13 May 2014 22:54:57(UTC)
Rank: Super forum user
paul.skyrme

boblewis wrote:
JJ I understand completely your point about a living income. However the basic point from any client perspective is "If I am paying peanuts then I am paying for a monkey to cover my back". Decent clients are looking to get good sound advice to manage their business better. This "cost means good" idea lies at the back of why directors listen more to expensive consultants who may be no better than in house staff. But to get to be a best consultant you need to offer more than just straight forward legal advice or basic documentation. You need an added value that puts you above the high volume businesses operating at minimum cost levels. Personally I think it a bad idea to get into writing any form of Risk Control statements without significant input from employees. Bob
IIRC the requirement for "consultants" to merely "assist" or act as "specialists" when doing RAMS for clients is written into HSE guidance/requirements somewhere. How can a company "own" its RAMS if they are done by an outside "company", the "user" HAS to be involved to make them work.
boblewis  
#24 Posted : 13 May 2014 23:14:19(UTC)
Rank: Super forum user
boblewis

Paul I agree with the HSE view totally BUT I also know that many contractors follow this path of an external consultant in order simply to satisfy some client or tick a box. Fine until it goes wrong. But consultants are chasing work and simply hope that they are not left holding the baby. They serve nobody any good and depress the market. I am confident their PI insurers would not want such a situation.
paul.skyrme  
#25 Posted : 13 May 2014 23:38:10(UTC)
Rank: Super forum user
paul.skyrme

bob, Is this why my clients baulk at being asked to take part in the assessments, rather than it just be handed to them on a plate? ;)
Users browsing this topic
Guest
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.