Over the past few weeks I have been teaching a seminar titled “Stake Your Claim in Machine Control Guidance and Digital Terrain Modeling” in conjunction with another licensed land surveyor and the sales manager for a machine control dealer.  The seminar is sponsored by The Associated General Contractors, New York State Chapter and the New York State Association of Professional Land Surveyors (NYSAPLS). 

NYSAPLS is also sponsoring another seminar on machine control this fall.  Surprisingly, we are seeing a fairly good turn out of surveyors that realize machine control is here to stay.  I have been polling the audience, and to no surprise, approximately half of the surveyors have seen their business affected by machine control technology.  The other half has seen a dramatic decrease in their boundary surveying work and are looking for other revenue opportunities to help keep their businesses up and running.

In my first article I noted that in 2008 NYSAPLS sponsored a similar seminar that was attended by a total of 40 people.  We are on schedule to have approximately 65 people attend this year’s seminar.  The seminar is being taught in 3 different locations across the state.  It seems this is still a relatively low percentage of land surveyors that are attending seminars on this topic, but it is encouraging to see the percentage is increasing. 

I enjoy presenting machine control technology as an opportunity for our land surveying community.  It is understandable that some are defensive and fear the change.  As I have said many times, there is still a need for land surveyors to play a role in the machine control technology.

Most of the land surveyors in attendance appear to be most interested in building 3D models or data preparation.  They realize that there is a need for surveyors to be involved in setting up the project control, but they see model building and data preparation as the best solution to filling a revenue gap that is being created by the technology. 

My favorite question that is always asked is “What do I charge to build a model?” or “How do I know what to charge to build a model?”

Obviously this a great question and my answer is always the same.  My answer is “It depends on the project and it depends on the value?  Always charge what it is worth.” 

In reality, how do we know what is a model is worth, how do you determine the value of a model, and how do you know what to charge?  As professionals we generally bill ourselves at an hourly rate, or we figure out the time it takes to perform a project and then multiply the time and the hourly rate and come up with the fee.  But what is the best way to determine what a model is worth?

First, what is involved with making a 3D model for machine control?  Models generally contain a TIN surface file.  This is the surface that guides the elevations for the machine control and tells the equipment operator to raise and lower his blade, or in the case of an automated system, automatically raises and lowers the blade to the correct elevation. 

The second part of the model is the linework file that the operators use to guide the horizontal location of the equipment.  It is basically the project plans on a screen so the operators know where they are in comparison to the various features shown on the project plans.

The third part of the model is the point information.  The point information is generally made up of control points and stakeout points.  In many cases, even though you have the linework to show you were a catch basin is located; I will also create a layout point for the catch basin.  I generally use these points to help build my surface model, so why not provide them as a deliverable to the client.  In many cases, my clients prefer to layout certain features with points, as opposed to doing it with only the linework. 

In many cases, if we were performing the construction layout for the project, we would be preparing this same information for our own in house people to use for the layout.  So this is no different than on any other construction project.  If we are going to create this information and then let someone else do the layout or let the machine control do the layout, does this decrease the value of our information?

If we stop and think about it for a minute, we soon realize that we are losing the construction layout on a project and we are in turn losing a substantial part of our revenue.  However, if we prepare a 3D model (surface, linework and point information) for a site project, has our liability decreased compared to if we had done the layout for the site?  In many cases, if we create the layout information and then go do the layout ourselves or our crews do the layout, we often find our own errors and they can be fixed before construction begins.  At least this helps us to limit our liability. 

However, if we create the information and then give it to an operator in a piece of heavy equipment, will they know when something doesn’t look correct and will they stop working to verify that the model information is correct before they continue to make a large cut or fill?  Probably not, and what is our liability in this case?  If the model is at the wrong elevation or if part of the model is incorrect, are we liable even though we didn’t do any layout?  Many of the questions still need to be answered and until there is an error on a model and it ends up in a law suit, we may not know how it plays out.

In any case, I am certainly going to assume that I am liable for my information if I am pricing up the cost of building a model.  Therefore, in pricing a model, I have to incorporate my time and effort, overhead, profit, liability, and the value of the model.

In many cases, I am pricing the same project for various contractors.  Since some of the contractors want construction layout and some only need model pricing, I generally end up doing pricing for complete construction layout, so I know what the price of the construction layout on a project is going to be. 

One way to find out the value of the model is to figure out what the price of the construction layout would be on the project.  If I have a construction layout project that would normally bring revenues of $10,000, what is the value to a contractor in having machine control and having a model of the project.  One rule of thumb I use is to take that $10,000 and divide it in half.  Therefore, if I am doing a model for a $10,000 construction layout project, I generally start with a price of $5,000.  I feel that covers my costs, overhead, profit, and liability and still gives the contractor a great value.  Of course this is not a hard and steadfast rule, this is just a rule of thumb.  I also take into account who my client is and the past relationship I have with these clients and the type of project they are doing. 

The most important part of pricing a model is making sure you are getting paid for the value of the model.  While teaching the seminars, I have been quite pleased with the fact the most of the surveyors in attendance are trying to understand the value of the models and make sure they don’t under charge for the building them.  Now if we can only get land surveyors to take the value of boundary surveys into account when they are pricing up their boundary work.   

Jay Jones is a PLS in New York and contributes monthly to MachineControlOnline.com