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From your total revenues, deduct all direct project costs EXCEPT your staff direct labor. This is your net fee amount (a).
$
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Divide your net fees by your staff direct labor dollars (b).
$
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The result is your net fee multiplier.
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| (a) Direct expenses other than labor would include project travel, project printing, sub-consultants, and any other expenses directly related to the performance of a project. These should be both reimbursable and non-reimbursable expenses. |
| (b) Direct labor dollars are those payroll dollars charged directly to a client project, whether billed or not billed. |
| The overall median net fee multiplier from the 2008 PSMJ A/E Financial Performance Survey is 3.09. How does your firm compare? |
| To learn more about typical net fee multipliers in the A/E industry and hundreds of other financial indicators, purchase the 2008 PSMJ A/E Financial Performance Survey. |
