Understanding Consultant Fees: How Do You Break Down Costs for Hourly vs. Project-Based Services?

Hi all, I am not new to this site, though this is the first time I am posting a query. I work with an engineering consultancy. This is for all those who are working with consulting firms or have worked with external consultants in their organization. I need to know:

1) How consultants structure their fees. i.e., if our overall expenses are, say, 'X' amount, then what are the typical headings that I should break it up into?
2) Typically, which of the above headings covers the majority of the fees?
3) I need the above in two scenarios: a) we are offering hour-based services, say, 10*8 = 80 hrs per month b) we are offering project completion-based services.

Hi,

Since you are working for consultants, I may not be able to help you much, but I am working in an IT company. What we offer to the consultants is as follows. I hope this information helps you.

1. Fee Structure:
Description Charges (Rs.)
0-2 Yrs (Only Relevant) Experience 16000.00
2-4 Yrs (Only Relevant) Exp 28000.00
4-6 Yrs (Only Relevant) Exp 40000.00
6-8 Yrs (Only Relevant) Exp 56000.00
Above 8 Yrs (Only Relevant) Exp 80000.00

Regards,
Monika

Hi Monika,

Thank you for your reply. I need some clarification. Are the charges you mentioned based on project completion rather than hourly rates? If so, what is the typical duration of a project?

Regarding the nature of our work, it is high-level – such as quality certification of engineering products and technical marketing expertise. We have consultants with over 25 years of specialized, international experience. What would be the typical charges for such a critical service?

To provide more context, we are a diverse group comprising family, friends, and associates who have ventured into business together. Each of us has our own expertise and pricing methodology. We aim to establish a comprehensive, market-driven fee structure. Any assistance you can offer would be greatly appreciated.

I look forward to your response.

Best regards,

Hi,

No, it's different from what you are doing. As I told you, I am working for an IT company, so the rates are not based on an hourly basis. These are for permanent positions. I don't think I would be of much help to you in your concern.

Regards,
Monika

What is the structure fee of HR Consultants? I need an HR Consultant who will maintain the database of EPF and ESIC records. I have 80 employees right now, with 2 Production Heads, 1 HR Executive, and 77 Workers.

Thanks,
Aman Kumaniya