General Consultant Discussion

How do you measure your utilization of your consultants? Do you measure utilization of your consultants? How does this vary between fixed price firms and time and billing firms? Generally I use a ratio of 60/40 where 60 % of the time should be billable. (though I don't agree with the time and billing method just subjected to it! haha)

60% sounds too low unless you have high rates and/or low pay. Remember, realization is more important which is utilization AFTER write offs.

When I've used subcontractors on fixed price jobs the best solution has been a fee split. Start at 50/50 and work from there. The less you have to manage the consultant the more you can offer them in terms of %.