DHA Costs: Is Saving with a Local Consultant Worth It?

Cost is almost always a factor in every purchasing decision we make. It may be a large factor, such as when purchasing a home, or it may be a minor factor, such as when ordering a pizza. But the price we pay is almost always considered to some extent.

Balancing Cost and Responsibility

Regardless of the priority price is given in the decision-making process, it is certainly wise to minimize your costs whenever possible. We feel this very personally when spending our own money, especially with an unexpected expense. But it is equally important when spending money on behalf of our employer, even though we might not feel as strongly about it.

Before hiring a DHA consultant, consider these factors to balance cost and safety:

• What’s your budget? Identify where you can save without cutting corners.
• Need specialized expertise? Unique circumstances demand deeper knowledge and experience.
• What’s at stake? A weak DHA could miss hazards, risking lives and assets.

Weighing Cost Against Expertise

When we find ourselves in a situation where we must hire a consultant, cost is naturally going to be a factor in deciding who to work with. One must decide then how important a factor cost is for their situation and try to determine where opportunities might exist to minimize the cost. However, I would argue that these two variables are not independent and must be considered together.

We look to consultants to help us when we do not have the knowledge, experience, or expertise to solve a problem on our own. Arguably, the qualifications of the consultant should be more important than price, but again these factors cannot be considered in isolation.

The Local Consultant Cost Myth

Consultants usually bill by the hour or determine their fee for a given service based on the number of hours that will be required to perform the service, and this often includes travel time and expenses. A Dust Hazard Analysis for an existing facility always involves a site visit, so it is natural then to expect that a local consultant should be lower cost than one located further away. If a consultant who is effectively billing you by the hour (plus expenses) can drive to your facility instead of flying on a plane and staying at a hotel, then the local provider could save you a chunk of money, right? Maybe…

Risks of Prioritizing Price

Remember, with a consultant you are hiring them for their knowledge. You must spend a minimum amount to get the expertise you require. You cannot save money by hiring a lower cost consultant if they are not capable of delivering the services you require. If you are lucky, you will discover that the consultant is not providing the expertise or value that you need, and you will end up having to hire someone else, potentially that higher priced consultant you did not hire in the first place. If you are unlucky, in the case of a DHA, you may end up with an inadequate DHA. This may result in hazards being missed and provide you with a false sense of security. A poor-quality DHA might also make recommendations that are unnecessary, impractical, overly costly, or some combination of the three. And of course, the worst-case scenario is an explosion which results in property damage, lost production, and injured (or worse) workers.

Defining Value in DHA Services

Like many purchases, the question of how much to spend on a consultant really comes down to the value you are receiving in return. Are you willing to spend more money on a consultant:

• Who is more knowledgeable?
• Whose service goes above and beyond the minimum requirements?
• Who is easy to work with and takes time to answer your questions before you’ve even hired them?
• Who provides clear, practical, actionable recommendations?
• Who gives you a report that explains things clearly and gives you options with pros and cons of each?

These are all factors that affect the perceived value you are receiving and can influence the price you are willing to pay.

Breaking Down Travel Costs

So back to price and local consultants…

How much money can be saved by hiring local? In my experience, it is typically less than 10%, and often closer to 5%. Travel costs for our DHAs typically account for between 5-10% of the fee. This includes travel time, flights, rental car, hotel, and meals. Two primary factors determine the percentage for a given facility:

• Facility Size/Complexity – All things being equal, travel costs will account for less of the total fee for a larger or more complex facility requiring more effort to survey and analyze.
• Facility location – the more remote the location, the more time and expense it will take to get there.

The worst-case scenario is a relatively small/simple facility located in a rural area far from major airports and interstates. The effort to survey the facility and conduct the DHA is low, but relatively significant travel time and expenses could be required just to get there. Travel costs for such a facility might even exceed 10%. On the other end of the spectrum, travel costs percentage for a larger facility within a short drive from a major airport will generally be less than 5%.

Keep in mind that a “local” consultant is still going to have some travel time and expenses associated with getting to site. Even if flying is not required, driving still takes time and costs money.

Making the Right Choice

So where does that leave one who is deciding between consultants when there is a local option? If you are shopping around for DHA providers, I would discourage you from excluding potential providers based on their proximity to your site. There is a chance you may be able to receive far more than 5-10% worth of value from working with a consultant who provides higher quality, more thorough, or more extensive services.

In summary, I would encourage you not to limit yourself when exploring options for DHA consultants, especially based on geography. Sure, there may be a chance to save a little money if you can hire someone local, but you need to consider the total value the consultant is offering. Ultimately you must ask yourself:

“Is saving 5-10% on the cost of my DHA worth it, when the consequences I am trying to protect against could cost millions?”

For more information on DHA costs and value, please see my blog titled Making a Business Case for DHAs (A Cost Benefit Analysis). 

About the Author

Chris Giusto is Regional Manager for the South Atlantic and Director of Combustible Dust Safety at Hallam-ICS. He works with clients to improve processes & safety, reduce waste & energy consumption, increase flexibility & capacity, and build new facilities. He has over 20 years of engineering experience and leads Hallam’s Combustible Dust Safety Service offerings. He’s spent nearly his entire career working with combustible dust hazards and designing NFPA-compliant equipment and systems. With additional expertise in material handling and dust collection system design, he and his team bring a comprehensive approach to practical solutions for improving safety and meeting NFPA requirements.

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About Hallam-ICS

Hallam-ICS is an engineering and automation company that designs MEP systems for facilities and plants, engineers control and automation solutions, and ensures safety and regulatory compliance through arc flash studies, commissioning, and validation. Our offices are located in Massachusetts, Connecticut, New York, Vermont and North Carolina, Texas and Florida and our projects take us world-wide.