How much is a Step 7 project worth in €?

NoName

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Sep 2003
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Hello. I hope that I can ask this question here. If not admin please delete this post.

How do you guys charge a Step 7 project???
By the number of hours that you will spend on the project or by the number of inputs that the project has or is there a diferent way to do this???
For instance is the project worth more if there is work with Protool involved, and if you let's say you have a couple of profibus slaves(Micromaster inverters) in the network... that sort of things???

I'm asking this beacouse I have been offered a project. So i have to make a proposal...

Thank you.
 
Most of us charge for custom programming by the hour, whether we quote an hourly rate or a lump sum bid based on our time estimate. I/O count may give you an idea of how long it will take to do a project, but only within the parameters of a similar type of control. A system with lot of discrete I/O, for example, may not be as difficult as a system with a few analog I/O requiring lots of PID loops and alarming and complex conversions and so on.

Take the absolute worst case amount of time you think it will take you to write the program, debug it, revise it for the things the customer left out of his description, test it on site, train the operators, go back and train the operators again, and then go back and demonstrate it really does work to management.

Then double that number.

Then add ten percent.

You won't be too far short of the actual time required.

If you do some creative searching on this site you will see lots of posts on estimating projects, protecting intellectual property, covering hardware costs (you or the customer), limiting liabilities, thoroughly describing the scope of your work and the customers obligations to provide info to you, and so on.
 
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At the company I work at we do it much like Tom described. We don't separate engineering hours based on what we do and then charge different amounts for the different functions. An engineering hour is an engineering hour.
However, at the project level, your estimate will probably have this built in a little bit. If I have a very drive intensive application or something that will require alot of extra concept time, I estimate this with a higher number of hours that I would for a more straightforward project with the same I/O count. I also tend to build in more 'fluff' (hours that aren't directly allocated to any estimated function) on projects I feel are conceptually more difficult.

Keith
 
NoName said:
How much do I charge for 1 hour of work???

That my friend is the $64,000 question!

Here's a little story I have posted here once before, in answer to a similar question to what you are asking.

Charles Proteus Steinmetz, an electrical engineer whose genius lived up to his middle name, worked at General Electrics for many years. One day a whole roomful of GE's most expensive machinery went out of order. By this time Steinmetz had retired, but the companies baffled engineers called him back as a consultant. Steinmetz ambled from one machine to another, taking a measurement here, scribbling something in his notebook there. After about an hour, he took a large piece of chalk and marked a large 'X' on the casing of one machine. Workers prized off the casing and found the problem at once. But when the company executives got Steinmetz's bill for $10,000, they were reluctant to pay it. "This seems a bit excessive for one chalk mark", Steinmetz was told. "Perhaps you'd better itemize your charges." Within a few days, they received the following itemized bill:

Making one chalk mark $1.00
Knowing where to make one chalk mark $9,999.00


You will see that he charged $10,000 for an hours work because he knew he was worth that, so what you charge will be what you think YOU are worth.

I am sure that has been of little help to you!

Paul
 
Interesting story PLucas. But the man unfortunatley undercharged them. The bill should be 10,001 $.
Beacouse if you want to make an X you would have to make 2 chalk marks wouldn't you.
JOKE!!!
It's a cool story no doubt about that.
 
There is guidance on this topic:

http://www.plctalk.net/qanda/showthread.php?s=&threadid=6441&highlight=billable+hours

In general, figure the annual salary for a man of your qualifications, divide by 2000 (for forty hour week), multiply by 1.5 or whatever (to cover benefits, taxes, paper, hair restorer, etc.) and double (because typically only half your time is billable). That's your hourly rate.

Or, you could use the expert's pricing technique. Quote a price: The basic project will be 2,000 Euros." IF the customer doesn't flinch, say "On top of that will be 1000 Euros for operator interface programming." If he just looks a little surprised, add "Then ther will by 750 Euros for alarming functions." If he merely starts wiggling and acting a little uncomfortable, then tell him ............ Keep going until he groans out loud and hangs his head - then you are at the market price.
 

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