What does the client pay the engineer in addition to the salary?

The client pays the engineer an additional percentage for overhead and profit because this arrangement reflects the financial realities of running an engineering practice. Engineers incur various overhead costs, including office expenses, utilities, equipment maintenance, and salaries of staff who support the project but may not be directly involved in the technical work.

The additional percentage accounts for these overhead expenses and provides a profit margin that allows the engineering firm to sustain its operations, grow, and invest in future projects. This structure of compensation ensures that the engineer can maintain a level of service while also being compensated fairly for their expertise and the resources needed to deliver successful project outcomes.

In many contracts, this percentage is predetermined and clearly outlined, so both the client and the engineering firm agree on the compensation model before the project begins. This ensures transparency and accountability in the financial aspects of the project, fostering a better partnership between the client and the engineer.