AND... unless the consultant lives where you are, they are going to have
expenses... travel, per diem, living, vehicle rental, and they aren't paid
for holidays or sick days.... so that gets built in.

It's not uncommon for a rate to include a percentage to cover certain
aspects of the above items, along with other things Patrick mentioned... or
at minimum, for a consultant to charge a daily rate, plus expenses.

So when you think about this type of calculation:

"For many organizations, decide the salary grade you'd hire into, and
determine the midpoint
of that salary band. To make the numbers simple, let's say the number is
$100,000. Then
add 150% to that number. In the example, that gets you to $250,000. Divide
that number
by 2080 (working hours in a year). That gives you a rounded number of $120
an hour."

Think about the burdened rate of your internal employee... add the annual
cost of healthcare insurance, paid sick and vacation days, other benefits,
etc. to that base rate then divide by 2080.  (I think this is where Patrick
was coming from with the 150%, so there *IS* rationale behind it)

And if it's a solo consultant on an individual engagement, they may have
other work they are partially dedicated to or developing for an assignment
started prior to yours or beginning after yours, so making sure you scope
and schedule are clear and not open ended is good for both of you.

Larry
(no, I'm not one any longer, but I was in the 90s... and I had a daily rate
that exceeded the $80/hr suggested earlier)
-- 
Larry
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*----Lawrence J. MedinaDanville, CARIM Professional since 1972*

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