| Author |
Message |
Anonymous
| | Posted on Wednesday, December 22, 2004 - 01:06 pm: |    |
I'm an in-house specifier with a CCS (and CCCA), but, like some of you in-house specifiers, I don't really feel appreciated by the firm for what I have to offer.
I've been in the career field for 20 years, registered for 14 years, and a specifier for the last 7 years (although I've written specifications throughout all my 20 years).
I'm seriously considering starting my own specification consulting practice, and would like to know how others in the independent arena got their start.
Also, I have several questions:
1. Have you incorporated your business (Inc., LLC)?
2. Do you recommend professional liability insurance?
3. How do you market yourself?
4. Any other suggestions?
Thanks! |
Anne Whitacre, CCS CSI
Senior Member
Username: awhitacre
Post Number: 148
Registered: 07-2002
| | Posted on Wednesday, December 22, 2004 - 02:27 pm: | |
although everyone out there will probably have a different take on this, here are my answers. Keep in mind that in my case, I'm single (no dependents) and worked alone when I was self-employed. Therefore, my accountant saw no tax or legal advantage to me incorporating in my state (Washington.) I have colleagues in my areas who were urged to incorporate because they did have families and a second household income.
Your insurance questions are also answered in the same vein: since you are licensed, does this open you up to more liability than if you weren't? An attorney or insurance carrier can advise on this.
Just like writing specs for a project, there are no "boilerplate" answers to your questions; talk to other practitioners in your area, consult with attorney, accountant and insurance carrier, and see what is recommended for YOUR situation, and YOUR potential practice.
Keep in mind that if you do consulting, you will have to provide your own benefits (health insurance, SEP-IRA, ); and your income will probably be inconsistent and irregular. You will have some tax advantages, but will have to take on other responsibilities to make up for that.
And the type of work you do may be very different from what you're used to doing. I went back to work for a firm because I like big complicated projects and consultants in my area seldom got to do those project types. I also wanted to be not as tied to the local (volatile) economy. |
John Regener, AIA, CCS, CCCA, CSI, SCIP
Senior Member
Username: john_regener
Post Number: 200
Registered: 04-2002
| | Posted on Wednesday, December 22, 2004 - 10:56 pm: | |
There are more than a couple of issues involved in deciding to be an independent specifications writer. There are issues related to producing construction specifications and there are issues related to being in business. The latter can be addressed by researching how to start and run a business and how to be an independent contractor. The former is where seeking the advice and mentoring of others comes into play.
SCIP (Specifications Consultants in Independent Practice) has no documents or official guidance on how to be an independent specifications writer. The networking of independent specifications writers through SCIP can be very valuable, however, and it is achieved by being involved and getting to know and be known by other independent specifications writers. This is something to achieve at national, regional and local levels. It requires investment of time and some financial resources.
Many who have transitioned from "in-house" to "out-house" (?!) or "dependent" to "independent" <g> status have been successful because of two things: retaining their former employer as a client and gaining new clients by referrals from other specifications writers. There is a lot of collegiality among independent specifications writers. There is also competition. In some way, many independent specifications writers have been able to balance these successfully.
There are some others matters to consider, such as understanding the differences in attitude and tasks that "employee" and "independent contractor" specifications writers must have plus the willingness to be at risk for payment of fee (but it's not as great as it might seem). But I'll leave those as threads for others to pick up and discuss.
/John Regener, AIA, CCS, CCCA, CSI, SCIP
President, Specifications Consultants in Independent Practice (2004-2006) |
Anonymous
| | Posted on Thursday, December 23, 2004 - 12:21 pm: | |
Do not spend too much time worrying items 1 & 2. Spend your time finding a market and making sure you find some customers that need you bad enough. Without clients you won’t have liability or tax problems. When you feel comfortable you can make a living, if you ever do, you can worry about that stuff.
Finally, do not do it just because you do not feel appreciated. Your Accounts Receivable will provide you a new insight on what appreciation means. |
Gerard Sanchis (Unregistered Guest)
Unregistered guest
| | Posted on Thursday, December 23, 2004 - 02:24 pm: | |
I believe that you missed one important point and that is how to get paid, and get paid on time.
Unfortunately there are a great number of qualified specifiers but few who can combine their writing talent with those it takes to stay in business - which after all is the primary reason you will want to write specs on your own. Hanging your shingle is easy. What comes afterwards is no so, especially the first few years.
From my experience, the mistake most specifiers make when first opening shop is to not know what to charge for their services. In nearly all cases their fee is too low because of lack of experience and the fact that most of them work out of a bedroom at first. They don’t realize what the costs are when you’re on your own – insurance, supplies, rent (even for the bedroom), utilities, equipment, etc. Remember the smaller the firm the higher the overhead which shouldn’t be less than 2.5 to 3 times base salary or what you would expect to get paid in house.
I wouldn't worry about incorporation and insurance for now. Get a good client base, get paid, and pay your bills. That's what it boils down to. |
(Unregistered Guest)
Unregistered guest
| | Posted on Friday, December 24, 2004 - 02:55 pm: | |
Anyone starting in business in any field should have the financial resources to exist (survive? Prosper?) for at least 6 months. That means cash to pay the mortgage, car, taxes, credit cards, and living.
Most clients will pay eventually, but just because you finish a job the first of February, doesn't mean you will get paid on the first of March. In fact, you probably won't.
After you've done a half dozen jobs, the income stream begins to look better. |
J. Peter Jordan
Senior Member
Username: jpjordan
Post Number: 29
Registered: 05-2004
| | Posted on Monday, December 27, 2004 - 10:11 am: | |
In areas of the country where I have lived, there are many A/E firms who write "pay when paid" provisions into their contracts with their consultants. Most of these firms will promptly write checks to their consultants when they receive a check from their clients (you will get paid), but if they do not bill promptly or their client does not pay promptly, you will be "out there" 2 to 3 months, 3 to 6 months for larger projects where the client pays on completion of milestones.
On the other hand, I have also seen consultants who did not promptly (or regularly) invoice for their work. The prime A/E consultant probably will not be able to submit an invoice to the Owner for subconsultant fees that have not been invoiced to the A/E (the firm where I currently work has this problem with several consultants). If you don't know your client's invoicing schedule (to bill the Owner), the best policy, in my view, is to send regular monthly invoices. When your client notifies you that he is about to invoice the Owner and requests a current invoice from you, drop everything and send it out as soon as you can.
Not to get too technical, but... Accrual accounting recognizes billed revenue (services for which you have done the work and submitted an invoice) as owed to you and it is posted on the books. Accrual accounting recognizes earned but unbilled revenue (services for which you have done the work, but not yet submitted an invoice) in footnotes. If you have to resort to legal means to collect, your position will be much stronger if you have sent an invoice. |
Helaine K. Robinson CCS
Senior Member
Username: hollyrob
Post Number: 114
Registered: 07-2003
| | Posted on Monday, December 27, 2004 - 11:49 am: | |
Some areas of the US may be more accustomed to independent specifiers and more willing to use them. |
John McGrann
Senior Member
Username: jmcgrann
Post Number: 39
Registered: 03-2002
| | Posted on Tuesday, December 28, 2004 - 01:35 pm: | |
The preceding is all very good advice. Several years ago I explored the possibility of setting up my own specification consulting practice. The best feedback I received at that time came from several trusted friends in the local consulting engineering community. Their insights became invaluable as I discussed my ideas and explored the possibilities with potential client firms in this area.
At that time I determined that stepping out on my own didn’t make sense, primarily due to overall dynamics and fee structures of the local design markets. |
David J. Wyatt
Senior Member
Username: dave_wyatt_csi_cca_ccca
Post Number: 6
Registered: 09-2004
| | Posted on Wednesday, January 05, 2005 - 11:06 am: | |
Making a graceful transition from employee to independent consultant takes patience and diligence. I suggest talking with friends in other types of work who may have tried it before cutting the umbilical cord with your employer.
Respect may remain as elusive to you in private practice as it is currently. Good news: a healthy income can make up for it.
Product representatives may be a good confidantes because they understand the challenges of selling themselves to a reticent clientele - architects - all the while maintaining a positive, energetic frame of mind. A product representative knows what it is like to feel unappreciated, yet they persevere with dignity and eventually become successful. Follow their example and you will succeed... eventually.
I have taken steps toward independence, but have been surprised to learn that it takes years, not mere months, to gain significant ground. I have settled into a specialty - consulting to manufacturers who want to bring their products to the architectural market and it has gone well.
Building a reputation is slow but rewarding. Unfortunately, your reputation can be undermined very quickly, so you must always do what is right.
This advice is easy to give, but not so easy to follow. I do wish you luck. |
Anonymous
| | Posted on Wednesday, January 05, 2005 - 06:57 pm: | |
Thanks everyone for your advice. As a frequent visitor and a regular contributor to this discussion forum, I knew I could count on your input (Although, for obvious reasons, I'm posting this as Anonymous). I greatly appreciate it.
John R.: In anticipation of this career move, I've decided to become a correspondent member of SCIP.
David W.: Thanks for the advice in asking product reps. As a board member of my local CSI chapter, I'm sure I'll get plenty of support from our membership.
One of the reasons for the change is to provide some flexibility and control in my life and career. I've received some advice from others who've ventured out on their own (although not in spec writing) and they wouldn't go back, even though the regular paycheck is tempting.
Again, thanks for the input, and I'll continue to monitor this thread. |
John McGrann
Senior Member
Username: jmcgrann
Post Number: 40
Registered: 03-2002
| | Posted on Thursday, January 06, 2005 - 08:59 am: | |
Best of luck to you in your endeavors. I for one will be interested in hearing how things work out for you, and hope you’ll share your experiences with us. |
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