Report: Private design saves millions

According to the Polytechnic Institute of New York University, using private-sector engineers on public projects could save state taxpayers millions of dollars each year.


A report released by the Polytechnic Institute of New York University states that New York State can save money by using private sector engineers for the design of public projects. Compared to in-house design costs, outsourced design costs were found to be at least 14% lower.
The results were formulated using comparative data for in-house engineers versus private sector engineers on: direct salaries adjusted for hours of work per week; fringe benefits including medical insurance, pension plans, survivors benefits, workers compensation, unemployment, and social security insurance; and overhead.

Statistical information for in-house costs was based on New York State Dept. of Transportation data from April 2007. Private engineering firm statistics were derived from an April 2008 random sampling of salaries, benefits, and overhead information from professional engineering firms throughout New York State, indexed and adjusted using the U.S. Dept. of Labor Statistics' Employer Cost Index established for private professionals and related groups.

For more information, visit the American Council of Engineering Companies of New York at or call 518-452-8611.

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