Quote from: einsteinsboi at May 03, 2010, 09:50 AM
FWIW, for most projects, I prefer to work with project based fee - tight well-defined spec with the agreement that any additional work will be billed at an hourly rate. This allows the client to manage their finances like Shane said and gives me the freedom to just work without monitoring hours. But the project spec has to be very tightly defined.
For loosely laid out tasks I use an hourly base rate with a minimum fee.
For a recent project, I made the mistake of defining it tightly and well-defined, but then the client regularly had request like ’but can you ALSO do this... it’s only a small change’. And when I said I could do it, but it would cost a little more, they were telling me to be ’more flexible’!
Next time I will explicitly allocate a number of hours for this extra work in the estimate. The customer can then make use of these hours, and if he does not he does not pay for them of course. I’m thinking that could be a good system.
Also, it’s good to charge up front, e.g. 10% up to 25% depending on the financial risk.