Freelance rates slip

A new survey for QS News has revealed that after a three-year run of good market conditions for freelancers, employers are no longer willing to pay them hourly rates. Instead, they are reverting to less lucrative day rates or fixed- term contracts. The trend contrasts with the previous three years, during which freelance rates increased significantly.

The survey found graduate PQSs were earning 15-22% more than their permanent counterparts. The same pay gap between permanent and freelance staff was found at the level of measurement surveyors.

The difference was only slightly bigger at partner and director level. At this grade, freelancers earn an average of 20-35% more than permanent people, whose average salary was £50,000-65,000 per year.

Increased demand for permanent staff was picked up in the study by Hays Property & Surveying Freelance Salary Guide 2006 in association with QS News. Hays found the number of permanent work placements had doubled compared to the previous year.

Temporary workers are going to have to be flexible when negotiating salaries

Gareth Broadrick, Hays Property Property & Surveying

Gareth Broadrick, senior manager of Hays Property & Surveying, warned: “If this continues, securing temporary contracts may be difficult as the need for interim support diminishes. As a result, temporary workers are going to have to be flexible when negotiating salaries. Otherwise, in the medium to long term, they will price themselves out of the market.”

Freelancers on the ground confirmed the trend. Peter Kaptur, a senior freelance QS in London, said he was earning £280-300 per day, down £10-20 on last year.

He said: “There is plenty of work out there but rates are getting lower. There is more competition, but not on the freelance side. The companies seem to be waiting for permanent people who are cheaper.”

He said that rates of pay for freelance cost consultants were particularly tight in the contractor’s QS market. Kaptur added that the market was also tough for more experienced surveyors: “I’ve been told I’m over-qualified. Employers are becoming more choosy.” But, he was hopeful the market would pick up in the Southeast when key projects like Crossrail and the Olympics started.