Engineering Profession Act, 2000 (Act No. 46 of 2000)Board NoticesGuideline Scope of Services and Professional FeesScope of Services and Tariff of Fees for Persons Registered in terms of the Act4. Guideline Fees4.4 Time-Based Fees |
| 4.4.1 | Introduction |
Time-based fees are all-inclusive and include allowances for overhead charges incurred by the consulting engineer as part of normal business operations, including the cost of management, as well as payments to administrative, clerical and secretarial staff used to support professional and technical staff in general and not on a specific project only.
Time-based fees are calculated by multiplying the hourly rate contemplated in clause 4.4, which is applicable to the consulting engineer or any other technical staff employed by the consulting engineer, with the actual time spent by such technical staff in performing the services required by the client.
Technical staff include all staff performing work directly related to the execution of the services and does not include any administrative, clerical and secretarial staff who may support professional and technical staff in general and not on a specific project only.
| 4.4.2 | Category of person |
To determine the time-based fee rates, the persons concerned are divided into:
| 1. | Category A, in respect of a private consulting engineering firm, means a top practitioner whose expertise and relevant experience is nationally or internationally recognised and who provides advice at a level of specialisation where such advice is recognised as that of an expert. |
| 2. | Category B, in respect of a private consulting engineering firm means a partner, a sole proprietor, a director, or a member who, jointly or severally with other partners, co-directors or co-members, bears the risks of the business, or takes responsibility for the projects and related liabilities of the firm and where his/her level of expertise and relevant experience is commensurate with the position, performs work of a conceptual nature in engineering design and development, provides strategic guidance in planning and executing a project and/or carries responsibility for quality management pertaining to a project. |
| 3. | Category C, in respect of a private consulting engineering firm means all salaried staff who are professionally registered in terms of the Act with adequate expertise and relevant experience performing work of an engineering nature and who carry the direct technical responsibility for one or more specific activities related to a project. A person referred to in Category A or B will fall in this category if such person performs work of an engineering nature at this Category C level. |
| 4. | Category D, in respect of a private consulting engineering firm means all other salaried technical staff with adequate expertise and relevant experience performing work of an engineering nature with direction and control provided by any person contemplated in categories A, B or C. |
| 4.4.3 | Time based fee rates |
The time-based fee rates are:
| 1. | Calculated for a person in category— |
| (a) | A and B at 22.00 cents per hour |
| (b) | C at 17.5 cents per hour; and |
| (c) | D at 16.5 cents per hour |
for each R100 or part thereof of the total annual cost of employment of the person concerned, as contemplated in sub-clause (4); or
| 2. | Alternatively time-based fee rates may be based on such indicative time based fee rates as are determined from time to time by various bodies such as the Department of Public Service and Administration (DPSA). |
| 3. | Provided that in all cases the client and consulting engineer may agree on a more appropriate fee to take account of the specific services to be rendered or expertise to be applied. |
| 4.4.4 | Total annual cost of employment |
For the purposes of clause 4.4, the total annual cost of employment of a person means the total amount borne by an employer in respect of the employment of such a person per year, calculated at the amounts applicable to such a person at the time when the services are rendered, including:
| 1. | Basic salary or a nominal market-related salary, excluding profit share and asset growth. |
| 2. | Fringe benefits not reflected in the basic salary, including: |
| (a) | Normal annual bonus |
| (b) | Employer's contribution to medical aid |
| (c) | Group life insurance premiums borne by the employer |
| (d) | Employer's contribution to a pension or provident fund |
| (e) | All other benefits or allowances payable in terms of a letter of appointment, including any transportation allowance or company vehicle benefit, telephone and/or computer allowances, etc |
| 3. | Statutory amounts payable, including: |
| (a) | Contributions to the Compensation Fund in terms of the Compensation for Occupational Injuries and Diseases Act, 130 of 1993 |
| (b) | Contributions to unemployment insurance in terms of the Unemployment Insurance Fund Act, 63 of 2001 |
| (c) | Levies in terms of the Skills Development Levy Act 9 of 1999 |
| (d) | Recoverable levies to all spheres of government. |