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Topic percentage upfront?
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By kirman25
On 08/29/00
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What's the "industry standard" for charging clients for a part of a project upfront? I heard a couple of opinions and I'd like to hear more.
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By Peter N.
On 08/29/00
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It depends on the work you're doing. If the work is something like documentation for a program or procedures, where everything kind of fits into scope, I could see doing a % up front, like 20% followed by payment for deliverable milestones that culminate in everything being payed for with the final deliverable.
Personally, I work by the hour. For every hour the client needs my skills, they should be OK with compensating me for my time.
Also, I feel that on most technical assignments a fixed cost contract really hurts the contractor. As I posted another time here, rarely do jobs finish on time. If it's fixed cost, and the client is the sole determiner of substantial completion, then you're hosed.
That said, if you are starting a company that will do contracts that you reasonbly think can be defined and completed, broadly in a process that consists of your client issuing an RFP, your submitting a proposal and a statment of work, and completing that statement of work in sections and milestones that constitute good points to issue an invoice, then I've seen a company do 30% up front and the rest per milestone from their client. The client may feel better if the final 30% comes upon completion - that way if there's a dispute they feel they have financial leverage.
-Peter
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By -
On 11/09/00
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I just came across the following article in TechRepublic.com. It doesn't give a black & white answer, but it gives good tips and resources on assessing and backing up your fees. - Miranda.
"GOING SOLO? GET TOP DOLLAR FOR YOUR SERVICES
If you're planning to leave a consulting firm to work independently, you'll want to set a price that's fair to you and to your clients. Read about how to determine a profitable rate based on your market and skill set."
>http://www.techrepublic.com/article.jhtml?id=r00720001031ger01.htm
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By SayGesture
On 06/28/01
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Myself, these day? I tend to ask for zero up front. They can pay the balance latter (if they have the proper change), after I've finished the dishes and watered the plants.
'the **ck you 'talkin' 'bout?
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