Attorneys and lawyers may get retainer fees, that is ‘a contract between two people or companies where one pays to reserve the other’s time’ (Wikipedia entry).
Now, are there opportunities for engineers get paid for ‘reserved time’? Well, examples are:
- The client wants certain engineers to work on the next phase of a project, but they currently don’t have work to stop the engineers seeking other jobs.
- The client has work coming up which is not guaranteed, and the consulting company wants compensation to keep grunts on the back burner, ready to leap into action once the PO / LOI / gentleman’s agreement kicks in.
What can a company do with their engineers on retainer? Unless they can get full compensation (40 billable hours a week), you need to have the engineers earn their supper.
- Have the engineers based in the office, don’t second them out on 3/6/9 month sessions. Maybe have them contribute but not lead in-house projects.
- Make sure there is sufficient time between the request for engineering support and when the bodies have to be handed over. One week should be sufficient.
- Make sure your accounting systems can handle retainer fees. If not, you will probably have more than 100% reimbursability, infinite return on investment, income coming in without a cost centre to park them, you get the idea.
Wata - Malaysian Oil and Gas Engineer 
Jabba reckons with the hot market conditions for process engineers, no need for retainers. The moment you finish a work pack, off the go to another project.
Consultants will try to milk a retainer from client, whereby they can double charge for an engineer.
Let’s face it, how many engineers only work on one project. The minimum would be 3 – 4 projects.
The point of retainership is that the client wants to keep certain key people on the following phase of the project (as scapegoats etc) but dont want to pay them full rates before the project/next phase starts.
Best case is if you are payed several retainer fees on projects that never ever start. Now thats really free money! IGL PS business plan……
Jabba tells slaves… opps, sorry… Jabba tells process engineering slaves they get to RETAIN their life if they work.
Retainer works perfectly.
How do you get one engineer to work on many projects at once, in this environment of photocopy engineers? Do you present a timescale based on an engineer working 30% of the time? Then get them on 4 projects, and tell them to use the photocopy machine to the max? and lots of liquid paper (aka Tippex, Whiteout and other funky names).
jabba reckons, normally, engineers work 30% offce hours, surf on net for 30%, play solitaire for 20% and sit in monday meeting for the last 10%.
if company crack the whip (or use light sabers) they could increase engineer’s output to 250%, and charge twice as much.
Hmmm…so that accounts for 90% of an engineer’s time. The last 10% must be for boot licking and the likes, or fetching CM chicken rice for the boss.
jabba, jedi mind trick works better than lightsaber on engineers.
jabba can’t feel the force, only exert force.
Sith Spawn misunderstands Jabba. Rebel scum work 10 hrs a day. Jabba’s minions in the Kessel spice mines work 24 hrs at a minimum. The 10% of his slaves’ time is for creating more minions. And sleep. And CM chicken rice.