Project Calls Professional Fees Survey, 2017
Just over a month ago, we launched a survey to help us, here a Project Calls, get a sense of the professional fees Consultants, Contractors and Service Providers charge for projects conducted within the Caribbean region. Based on our own observations, along with the experience of others, we noted that such information was not readily available. Moreover, being self-employed, or working as a third-party provider, though rewarding, can be competitive and isolating. Hence, access to some pricing information could, at the very least, be a useful consideration when determining the professional fees to charge.
To be clear, when we say ‘professional fees’, we are referring to the price (or rate) you charge for your services (or labour) – be it as a Consultant, Contractor or Service Provider. Usually, it is expressed either as a daily or hourly rate, based on the tender requirements. Such a fee is distinct from the possible expenses associated with the delivery of the assignment, such as: airfare, travel, meals, accommodations, printing, telecommunications, etc. Depending on the nature of the assignment, there may be no specific provision for expenses, though, strictly speaking, some would most likely be incurred, and would be absorbed by the provider. Having said this, it is thus important – prior to starting the contract – to carefully consider the amount of expenses that could be incurred, and have the requisite discussions with the client.
The 2017 fee survey results
The survey instrument was administered online for a period of about six weeks. In this inaugural exercise, 40 responses were received, primarily from Consultants and Service Providers:
- 80% of respondents live in the Caribbean
- 60% of respondents have been operating for more than 5 years
- Over 70% are Consultants.
Full Access subscribers, click here to access the full survey report!
Due to the relatively low response received, we were limited in the amount of analysis and ultimately, the inference we could make. As a result, we focused on examining the professional fees charged by Consultants and Service Providers only. Too few Contractors participated in the survey to support any reasonable review and/or analysis.
For consulting work conducted in the Caribbean, and on average, the highest fees are charged for internationally (or donor)-funded project, whilst the lowest fees tend to be charged for locally funded projects, as shown in Exhibit 1. There is approximately a USD 20.00 per hour (up to USD 160.00 per day) difference in the professional fees charged between a locally-funded and an internationally-funded project.
Exhibit 1: Average hourly rate charged by Consultants and Service Providers for Caribbean projects
| Source of Funds | Average Hourly Fee (USD) | |
| Consultants | Service Providers | |
| Local | $ 129.70 | $ 81.00 |
| Regional | $ 143.79 | $ 106.00 |
| International/Donor | $ 151.22 | $ 99.00 |
For service provision projects in the Caribbean, the average professional fees are between 26% and 38% less than those charged for consulting projects. Further, based on the source of funds, there is up to a USD 15.00 difference in professional fees charged; with the highest fees being recorded for regionally-funded projects.
In addition to professional fees, the survey sought to determine whether there were any factors that influenced the fees established, and a short list of likely factors was provided from which respondents had to choose. The majority of respondents, 86%, confirmed that a combination of variables, based on both the client’s and their current situation and imperatives, are factored to determine the professional fees charged for a particular project. The top considerations in order of priority, based on the list we provided, are as follows:
- The scope of the work specified
- The expertise required
- The duration of the assignment
- The nature of contractor/source of funds
- The impact of or how lucrative the work could be to the client
- The anticipated difficulty of working with a particular client
- The likely interest in and competitiveness of the tendering process
Summary
Finally, although the survey response size was relatively small, the results still give some indication of the professional fees charged by Independent Consultants and Service Providers for projects undertaken in the Caribbean region. More importantly, just over half of the survey respondents (51%) were not confident that their fees were consistent with what obtains in their industry or country. Hence, these results would still provide some useful insight, and supports the need for such information to be available, in order to better help individuals make more informed decisions.
Having said this, it is hoped that in future exercises, a higher response rate is experienced, thus facilitating more comprehensive findings and deeper analysis.
Image: Pixabay (Pexels)