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#1 Posted : 13 January 2009 14:38:00(UTC)
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Posted By Lee Mac Hi All Not meaning to ruffle any feathers with this but I would like to hear the thoughts on this topic. Many H&S consultants now charge a retainer fee to certain clients. The fees I have come across have varied greatly for companies of a similar size. My questions are as follows: What would a medium sized construction company be expected to pay as a retainer? What would be offered for this retainer? Do clients see this as normal protocol? Let the games begin! Lee
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#2 Posted : 13 January 2009 16:53:00(UTC)
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Posted By GeoffB4 Where did you get the information from Lee and are you prepared to show some of the figures?
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#3 Posted : 13 January 2009 16:55:00(UTC)
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Posted By Steve Cartwright I know of some who charge an anual fee but break it down into monthly payments. But for that they do provide a few services such audits, policies, advice over the phone etc.
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#4 Posted : 13 January 2009 17:13:00(UTC)
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Posted By Richard Altoft We are consultants and we never charge a retainer nor do we charge for small queries over the phone or email etc. That way we know our clients or anyone else who needs safety advice will not be scared to call us. We also agree up front any fees and the breakdown of them so clients can budget and get comparisons if they like. We have been offered retainers but then would have to watch or limit what we did in return which is not conducive to being professional and supplying a quality service. Fair's fair. R
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#5 Posted : 13 January 2009 17:22:00(UTC)
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Posted By GeoffB4 Quote: We have been offered retainers but then would have to watch or limit what we did in return which is not conducive to being professional and supplying a quality service. Mmmm. We offer retainers and provide a professional quality service! One reason being our clients can feel free to call us at any time with queries. Seems to work quite well for us. Thus, can we limit the quote above by saying 'in your opinion.' :-)))
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#6 Posted : 13 January 2009 17:36:00(UTC)
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Posted By Richard Altoft Yes GeoffB4 "in my opinion". My name is there, the item starts "we" and that should be enough to indicate that it is an opinion.Sorry if you have taken offence. R
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#7 Posted : 13 January 2009 17:56:00(UTC)
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Posted By GeoffB4 Missed the smiley?
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#8 Posted : 13 January 2009 17:57:00(UTC)
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Posted By Merv Newman Our position is exactly that of Richard Altoft. Except that we don't even offer retainers. Quite a lot of our work is (unbilled) e-mails and phone calls. I think a retainer would be too constraining ; I would feel obliged to deal with/visit that client as a priority over perhaps a more deserving (tongue in cheek there) client. That said, the idea of a retainer is tempting as it would provide a guaranteed (thank you spellchecker) income stream for at least 12 months. As it is, the potential client ask for a quote, we quote, and we wait (and pray) And there is, on average, a 6 month delay between being asked and cashing the cheque. Much more exciting ! Merv
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#9 Posted : 13 January 2009 18:10:00(UTC)
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Posted By Richard Altoft Just to clarify -- we don't offer retainers -- we have been offered them -- in other words client wanted us to agree to their idea of a retainer. That alone made us cautious. We refused. Incidentally we have just been approached by a solicitor who has a client in trouble -- prohibition notice in place and prosecution very likely. Client is not anyone we have ever been involved with but solicitor said his client felt very aggrieved as "he had been paying his consultant a retainer and thought everything was covered". Client now demanding HSE should prosecute the retained consultant as well and is asking solicitor to sue consultant for negligence. Clearly client is ignorant of his own responsibilities but feels very let down. For avoidance of doubt the client here is the solicitors client and was never ever one of ours -- we are being asked to mount a rescue and pull him out of the mire and possibly act as expert witness. R
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#10 Posted : 13 January 2009 19:31:00(UTC)
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Posted By Ian G Hutchings We work on monthly fees (fixed annual contract) for some SMEs and have clearly defined service level agreements we work from. Based on the fee levels there are differing levels of time/response. When we work on fixed price one-off projects we have clearly defined terms and deliverables against an invoicing schedule, but quite frequently go further to provide a quality service. Our market is split between SMEs and larger clients, so the needs and budgets do differ. We just need to ensure that the client is aware upfront that they hold accountability for certain aspects, as do we for delivering our services. If there is a greater risk to us than may be usual, our fees and terms and conditions will reflect this exposure. However, we don't take monthly fees without delivering something. Some do and take the risk that goes with poor service. Unfortunately some clients don't realise they have gaps until there is a serious event. Often the fees were the only consideration at the point of purchase, not quality or competence. Hope this helps Ian
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#11 Posted : 14 January 2009 08:16:00(UTC)
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Posted By Bob Youel Look at what you pay your lawyer, accountant and insurer and go from there as if you use your H&S consultant properly you will reduce costs in those areas Retention costs should reflect the risk present
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#12 Posted : 14 January 2009 09:16:00(UTC)
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Posted By Lee Mac Geoff I cannot name names (breaching a few things me thinks!!) But from looking from some of the previous posts the retainer isn't always for old rope. I guess hiring a consultant is like everything else in this challenging economic climate that we are all facing, it pays to shop around. Lee
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#13 Posted : 14 January 2009 09:58:00(UTC)
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Posted By GeoffB4 Not after the names Lee, just interested in where you got the information from.
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#14 Posted : 14 January 2009 11:14:00(UTC)
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Posted By Safety officer Geoff, Do you think you are in need of a consultant? I'm interested why companies use them IMO they are more trouble than they are worth. Can you do it yourself? Or am I off the point?
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#15 Posted : 14 January 2009 11:34:00(UTC)
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Posted By Ian Waldram Just a reminder about the two IOSH Guides in this area - one for clients and one for consultants. This issue of 'retainers' isn't specifically mentioned, but there is strong emphasis on the need for deliverables to be agreed by both parties and also to be tailored to the specific client. It is good to see that all the responses above from consultants seem to fully support such an approach, whether or not there is a fixed fee involved. Obviously IOSH can't control the actions of non-members, but our Guides are intended to help define what is 'good practice' for members. Ian Waldram IOSH Trustee
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#16 Posted : 14 January 2009 11:54:00(UTC)
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Posted By David Bannister Safety officer, consultants are used by employers for basically two reasons: insufficient internal resource available or they want objective external opinions and guidance. My clients fall in to both categories, with the former including those who want a specific service that they need but don't have the internal competence to do. Whilst most existing H&S teams may be perfectly competent and resourced to do most things needed there may be a specific task that is beyond them e.g. hygiene monitoring or an ergonomic assessment on a planed new production line. I am bound to say that the clients who hire competent consultants rarely see them as a waste of time or they would not keep paying the fees. The many consultants who use this forum are (I believe) still busy, doing great work with their clients who (in my case) are grateful.
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#17 Posted : 14 January 2009 12:25:00(UTC)
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Posted By GeoffB4 David, agree with what you've said. We started our consultancy 13 years ago and still have the first three retained clients on our books. We must be doing something right. Merv, apart from a regular annual income, we benefit from our retained clients using our services for projects - we are their first port of call for advice and quotes.
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#18 Posted : 14 January 2009 13:40:00(UTC)
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Posted By Lee Mac Geoff I am a member of a local committee and it was brought up in passing at once of our meetings by local company MD and he wasn't being offered half of what has been mentioned in previous posts. Without knowing what is the norm for a retainer cost, maybe he was getting value for money, but I personally would have considered a p/t H&S Officer/Manager. Lee
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#19 Posted : 14 January 2009 14:40:00(UTC)
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Posted By David Brede I charge retainers if the client involved wishes to use my name, qualifications and cv if required to tender for work. These firms will also get free on line and phone advice as required. When a specific task is to be done then they are charged a pre arranged fee for the service.
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