When economic times are tough, there is usually an increase in the number of consultants used in architectural and engineering firms, as well as in construction companies. The “consultants”referred to in this article are the ones that may have been employees of the firm in better economic times. This is in contrast with other types of consultants who have specialties and work on projects, such as MEP engineers. Labeling these individuals as “consultants” allows the company to continue working with those individuals in a fashion that is less expensive for the company, but may be more expensive for the individual.
The biggest area of savings for the company is generally in the insurance category. The company no longer has to be concerned about health insurance or workers compensation. As a “consultant”, the individual has his own business and may decide whether or not to incur those expenses. Self-employed business owner also generally do not need to carry worker’s compensation insurance if they do not have employees. Of course the laws on this topic vary from state to state, so be sure to check on those in your area.