[UPHPU] Going Rate for PHP/MySQL Development

[Joel Otterstrom]

The real issue with Utah Valley is that theres really not a lot of companys
that are past start up level, small business level, and are really big
companies. I am sure a company like Novell can afford to pay a contractor a
little more. I know of a guy in my brothers neighborhood who makes 100K a
year from Novell but Novell charges the client like 500K but a smaller shop
doesn't have those types of clients for the most part. I think its just
really where you can find a job. If you want to get a starting salary of 80K
a year move to Silicon Valley and live in a shed because the cost of living
is so high.

Joel

-----Original Message-----
From: uphpu-bounces at uphpu.org [mailto:uphpu-bounces at uphpu.org]On Behalf
Of Dan Wilson
Sent: Thursday, October 28, 2004 10:13 AM
To: uphpu at uphpu.org
Subject: Re: [UPHPU] Going Rate for PHP/MySQL Development


Using this formula, I should be charging $58... if I could get that out
of a contract job, I'd be a happy man! And would probably be able to
quit my full-time job and just do contract work.

-Dan

On Thu, 2004-10-28 at 09:37, Brad Davis wrote:
> >>I'd expect a contract position to get $20-$25 per hour, for an
> >>experienced developer.  A lot of local employers want to pay less than
> >>that (unfortunately) -- but contract work usually means "sans benefits,"
> >>so the pay is usually a bit higher.
>
> People, be very careful at how you bid contracts.  Depending on what you
provide
> to yourself (taxes, benefits, equipment, office space, etc.) true pay
rates are
> much lower.  The Feds expect that taxes and benefits can add 25%-30%.
Overhead
> (equipment, office, support staff, ...) can add 50% to that figure.  At
3Com in
> the mid-1990's engineers were calculated to cost $150k per year, fully
burdened
> (or about $75 per hour) even though the engineer may only be paid $75k per
year.
> (This didn't include specialized equipment which came from different
budgets.)
>
> If you provide everything needed for a contract (including equipment and
office
> space) then the above would give a salary of only be about $20k to $26k
per year.
> If just pay your own employment taxes, health insurance, vacation, and
retirement,
> the above rates would give a salary of $30k to $38k per year.
>
> You should start with what you would get fulltime, divide by the number of
fulltime
> hours per year, multiply that by the direct cost overhead (1.2 to 1.3) and
then
> possibly multiply that by the infrastructure overhead (can be 1.5).
>
> (I used 2000 work hours per year, the real number is closer to 1900.  You
can
> contract yourself into the poor house.)
>
> Brad Davis
>
>
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