How to Set Your Rates as an AEC Freelancer
One of the biggest challenges for AEC freelancers is setting rates. Charge too little, and you undervalue your expertise and struggle to sustain your business. Charge too much, and you risk pricing yourself out of opportunities.
Here's how to approach rate-setting strategically so you're compensated fairly while remaining competitive.
Start with Your Baseline: What You Actually Need
Before you set a rate, calculate your minimum acceptable income by considering:
Your Previous Salary Equivalent
If you're transitioning from full-time work, start with your annual salary divided by 2,080 hours (full-time equivalent). This gives you a baseline hourly rate.
Benefits You Now Cover Yourself
Health insurance
Retirement contributions
Disability insurance
Life insurance
Paid time off (you're not paid when you don't work)
Business Expenses
Software licenses (AutoCAD, Revit, Civil 3D, etc.)
Computer equipment and upgrades
Professional development and continuing education
Liability insurance
Marketing and professional memberships
Taxes
Freelancers pay both the employer and employee portions of payroll taxes (15.3% self-employment tax), plus income tax.
Non-Billable Time
You won't bill 40 hours per week. Time spent on proposals, client communication, invoicing, admin work, and business development isn't billable but it's necessary.
A Common Formula
Take your previous hourly equivalent salary and multiply by 1.5 to 2x to cover these additional costs. So if your full-time equivalent was $50/hour, your freelance rate should start at $75-$100/hour minimum.
Factor in Your Experience and Credentials
Your rates should reflect what you bring to the table:
Years of Discipline-Specific Experience
A senior engineer with 20 years of bridge design experience commands higher rates than someone with 5 years of general civil experience.
Professional Licenses
A PE or RA license significantly increases your value because firms need licensed professionals to stamp drawings and take responsibility for technical work.
Specialized Certifications
LEED AP, PMP, LEED Fellow, or specialty certifications in areas like seismic design, historic preservation, or accessibility demonstrate additional expertise.
Complexity of Work You Can Handle Independently
If you can manage entire project phases, coordinate with other disciplines, and deliver stamped documents without supervision, you're worth more than someone who needs guidance.
Senior professionals with licenses and specialized expertise should charge premium rates. Firms pay for the value and reduced risk you provide.
Consider Market Rates in Your Discipline and Region
Research what other AEC freelancers in your discipline and geographic area charge. Check:
Industry Salary Surveys
Organizations like ACEC, AIA, and engineering societies publish salary data. Convert annual salaries to hourly rates and apply the 1.5-2x multiplier.
Conversations with Peers
Talk to other freelancers in your network. Most professionals are willing to share rate ranges, especially if you're not direct competitors.
Rate Ranges on Platforms
Once GigBench and similar platforms launch, you'll see what others in your discipline are charging. This provides real-world market validation.
You don't have to match the market exactly. Your experience and credentials may justify higher rates but you should understand where you fall within the range.
Decide Between Hourly and Project-Based Pricing
Hourly Rates Work Well For
Ongoing support or consulting arrangements
Projects with uncertain scope or evolving requirements
Work where hours are difficult to estimate upfront
Clients who prefer detailed time tracking and transparency
Project-Based Pricing Works Well For
Well-defined deliverables with clear scope
Work you've done many times and can estimate accurately
Clients who want cost certainty and budget predictability
Projects where your efficiency benefits you (finish faster, earn more per hour)
How to Calculate Project-Based Rates
Estimate hours honestly based on the scope, then multiply by your hourly rate. Build in a buffer (10-20%) for revisions, scope adjustments, or unforeseen complexity.
If you're very efficient, project-based pricing rewards you. You can complete work faster and effectively earn a higher hourly rate.
Adjust for Project Complexity and Timeline
Not all projects are equal. Charge more for:
Rush Deadlines
If a firm needs something delivered in days instead of weeks, premium pricing reflects your immediate availability and the disruption to your schedule.
Complex or High-Stakes Projects
Work involving advanced analysis, significant liability, regulatory scrutiny, or high client visibility justifies higher rates.
Short-Term Engagements
One-off projects require more upfront effort (onboarding, learning the firm's standards) than long-term recurring work. Short projects should command higher rates.
Extensive Coordination
If the project requires managing multiple stakeholders, attending frequent meetings, or navigating complex approval processes, your rate should reflect that additional effort.
Communicate Your Value, Not Just Your Rate
When discussing rates with firms, focus on what they're getting:
Credentials and Expertise
"I'm a licensed PE with 15 years of structural experience, including 50+ completed projects in commercial and institutional buildings."
Deliverable Quality and Reliability
"I deliver stamped calculations and detailed reports that meet code requirements and pass review without revisions."
Reduced Risk
"Working with a verified, licensed professional reduces your liability and ensures regulatory compliance."
Efficiency
"I've done this type of work repeatedly, so I can deliver faster without sacrificing quality."
Firms understand that expertise costs more and they're willing to pay for it when they see the value clearly.
Review and Adjust Regularly
Your rates shouldn't stay static. As you gain experience, expand your skills, or see market demand increase, adjust accordingly.
Review your rates every 6-12 months and ask:
Am I consistently booked at my current rate?
Have I gained new credentials, certifications, or expertise?
Has market demand for my discipline shifted?
Are clients accepting my rates without pushback?
If you're booked solid and clients aren't negotiating, you're probably underpriced. If you're struggling to land work, you may need to adjust or improve how you communicate your value.
The Bottom Line
Rate-setting is part analysis, part market understanding, and part confidence in your value. Start with a realistic baseline that covers your costs, factor in your credentials and experience, and adjust based on project complexity and market feedback.
On GigBench, you control your rates. Firms see your credentials, understand your expertise, and recognize that quality talent is worth paying for.
Set your rates confidently. Your experience and professionalism deserve fair compensation.
