ECN Forum Forums General Topics of the Trade Business Related Discussion Per diem rates

Happy New Year! I hope this will be a prosperous one for all.
I need some help with per diem rates.What do we charge the customer and do we charge per man, per night or a flat rate? And then what do you pay your men? Any info you have will be appreciated. Thanks.

Per diem rates are very dependant on the area the work is in. A expensive area will require a higher rate than one that is much cheaper.
Per diem should cover the costs of hotels and reasonable resturant meals. What is reasonable is often subject to discussion.
What you charge your customer has to take this and some travel into consideration.
Have seen 65.00/day /man paid on a number of jobs in the midwest but that would be way too low for places like new york city or other cities where a decent hotel will cost more than that each day.
What you have to bill a customer will have to cover the amount paid to each worker and the supervisors and managers who travel in to the job as necessary.
Per diem is a cost that should be included in the bid for the job. It can easily get out of control if the job has problems or runs over the scheduled days.
To set a rate you will need a good idea of the hotel rates and average resturant costs in the area to be worked in.

EMS:
"Per Diem" rates that I bill for travel to a jobsite are calculated by the location.
In-state, day rate can run $450-700. Out of state is based on travel costs, lodging, transportation & expenses. $3800 for a 4 day trip to the west coast is not uncommon.

Now, a daily rate for 1 electrician, local, can run from $400 to $580.

John