At the most recent Illinois ACEC Membership Meeting on May 8, 2017, Priscilla Tobias, the Director of the IDOT Office of Program Development provided an update on the Consultant Compensation Working Group of ACEC/IDOT. The working group has been able to get the following approved by the Secretary of Transportation:
- Salary caps have gone from a two tier system of $60 and $70 to a one tier system of $75. This salary cap is only for the estimation process. For actual invoicing, hourly rates can be used, but the consultant needs to work within the confines of the budget. The salary cap will be reviewed every two years and will be adjusted based on the CPI.
- IDOT is changing the fee structure from .37 Direct Labor to .33 Direct Labor.
- Consultants are changing from a three tier system for mark-up on subs: 10%/12%/15%, to a flat 10% regardless on the number of subs. Illinois is just one of a few states that provides mark-ups on subs.
- Multi-year contracts – escalation will go from 3% down to 2%.
- No decision has been decided on bonus compensation issues.
IDOT has yet to determine how these new rules will be implemented. Current thoughts are new contracts will be implemented under these specifics and existing contracts will remain operating under the old rules.
If you have questions, need assistance with your FAR Overhead rate or would like training on FAR Overhead specifics please contact Somerset’s knowledgeable industry experts at 317-472-2200 or email us at .