|Becoming an Associate
This page will discuss who CPE Labs is as well as the benefits of becoming an associate of CPE Labs as an independent contracting consultant.
Who and what we are
CPE Labs is a division of Longview Holding Corporation based in Kentucky.
Longview Holding Corporation is a family controlled IRS subchapter S corporation that is engaged in agribusiness, retail sales, and computer consulting. LHC is a small corporation with under 1 million dollars in gross sales per year.
CPE Labs is the computer consulting division. This division was originally started to address Computer Performance Evaluation (CPE). CPE disciplines are still a part of CPE Labs but the marketplace has also dictated that we meet our customers needs for general skills in Systems Programming and Administration. CPE Labs does not maintain a sales force but rather sub contracts to regional and national resource firms.
CPE Labs also outsources the people resources engaged in the systems administration/programming departments of small to mid sized companies.
What's in it for me?
A decision to work with CPE Labs is a decision to work for yourself.
As an independent contractor you decide the contract specifics of your engagement. CPE Labs only helps to administer the engagement for you.
People sourced sites are set up as individual practices administered by the onsite staff. For instance, the Acme company has two full time systems programmers that are being outsorced by CPE Labs. CPE Labs will set up a "practice" that will exist in the company independent of other practices under oversight by CPE Labs. CPE Labs will determine the payroll load and hourly rate for each outsourced systems programmer. This amount will become part of the budget the onsite practice will use to spend as it sees fit for additional resources, benefits, etc. Each practice will be different and profit oriented to the end client. The practice is also available to work other client engagements locally or remotely.
CPE Labs provides the following services:
- A licensed and registered corporation from which to operate eliminating the need for you to become a single employee corporation. Some resource firms will not sub contract a single employee corporation and insist that the consultant work as a W2 employee of the resource firm.
- General Liability Insurance.
- Workers Compensation coverage.
- Administrative services to locate client engagements and perform accounts payable.
- Access to corporate intranet services and email accounts if desired.
- Sub leasing of computer, cellular, paging or other equipment as needed.
- Travel, lodging, expense account services including credit card services.
- Corporate coverage of CPE Labs Errors and Omissions insurance.
- Management support through contract negotiations.
- Any other service that is desired can probably be performed by administration services and billed through CPE Labs.
What is in it for you, the independent consultant?
- Decrease individual overhead costs.
- Increase profits
- Pay for only those services that are needed.
How is the money handled?
The process of getting a consulting engagement through CPE Labs and understanding the flow of money through the various companies involved is fairly straight forward.
CPE Labs works with national resource "head hunter" firms to match your skills to a clients requirements. CPE Labs depends upon the resource firm to have a sales staff to call upon the client and work with them to build the specifics of the resource requirement. The resource firm also handles the sometimes lengthy billing requirements of the client. Where a CPE Labs consultant may be paid every one to two weeks a resource firm may collect only every 30-60 days from the client.
Once a resource firm wishes to begin the interview process with a consultant CPE Labs will put the resource firm in direct contact with the consultant. It is then the consultant's responsibility to negotiate rate, statement of work, and client interviews.
Once a client accepts a CPE Labs sub contractor CPE Labs management will then complete contract negotiations with the resource firm on behalf of the contractor.
As an example we will assume that a resource firm and client want to sub contract with a CPE Labs independent consultant.
- The resource firm negotiates a rate of $100/hr for the consultant. This rate covers the sales staff and resource firms administrative costs of the engagement.
- The CPE Labs consultant negotiates a rate of $80/hr for the engagement with the resource firm. This rate is generally between 65-80% of the client rate. As a sub contractor we may never know what rate the client is paying the resource firm. A combination of experience and demand tends to set this rate which in turn tends to set the rate the client will pay as well.
- The CPE Labs consultant negotiates an administrative rate with CPE Labs for securing the engagement, providing administrative services, and insurance coverage. This rate is generally $2-5/hr plus cost of any insurance coverage and other services.
- As the consultant works a job for a client he will report work hours weekly to CPE Labs, client, and resource firm. CPE Labs will bill the resource firm weekly. When the resource firm pays CPE Labs the invoiced amount CPE Labs will then in turn write a check to the consultant less the agreed to amount for administrative costs and insurance.
- Depending upon your tax status to CPE Labs as an employee with W2 taxes taken out of your check or a 1099 sub contractor you should contact an accountant to determine how taxes should be paid.
How do I become an associate of CPE Labs?
Contact Richard Steele at 866-267-0245 x901.
Send your resume to CPE Labs to be included in the web site.
You are associated with CPE Labs only for the duration of any single contract.
Depending upon your circumstances submit either the 1099 Contractor Agreement or the Subcontractors Service Agreement for full consideration.