Engineering Design Services LLC is an engineering consulting firm headquartered in Corpus Christi, Texas. EDS was founded in July of 2018 to serve the Petrochemical, Renewable Energy, and Technology industries.
Our Professional Engineers focus on providing high-quality service by integrating new technology with our years of industry experience. From the use of drone mounted laser scanners, to implementing augmented reality glasses, such as the Microsoft HoloLens2, EDS has the technology to solve any modern day problem. This technology allows clients to see their projects from a different view.
Engineering Design Services LLC focuses on alignment of our internal incentives to those of our clients.
Our Goal - Aligned Incentives
Engineering Design Services strives to align our incentives with those of our clients. Doing so means that we are both working towards the same goal. Their are two ways we do this: operating primarily with lump sum contracts and by never issuing change orders.
Most engineering consulting firms operate under one of two distinct project platforms: Time and Material (T&M) or Lump Sum. These two billing platforms drive two different incentives for work.
Time and Material contracts focus on maximizing manhours to maximize profit – a consulting firm’s profit will be a fixed markup from the number of hours billed. The result is that consulting firms are incentivized to do the minimum work necessary to not be fired, so that they can redo the same work scope to bill additional hours for the same amount of work that is ultimately performed. This is an example of how incentives can be misaligned. T&M Incentive – Bill as many hours as possible to maximize profit.
Lump sum contracts focus on completing the project as quickly and as accurately as possible to maximize profit. The result is that consulting firms will try and complete the project accurately in order to move on to the next job. Lump Sum Incentive – Complete the project ASAP to maximize profit.
The biggest risk to clients for lump sum projects is change orders and that is where EDS comes in to mitigate your risk – we have never issued a change order.