Re: Questions - Going from Hourly to Per Project Basis?

[Goober Writer <gooberwriter -at- yahoo -dot- com>]

> With weekly billing, if I have to wait ten hours for
> info, I can just go
> home, do something else, and I still get paid for
> the whole week. This only
> has to happen a few times before the client gets the
> idea that they need to
> keep the project moving.

Understood, but Geoff's approach/example was in
response to the poster's mention of the client's
perception that the contract is costing too much. Yes,
your tactic works to weed out latency on the client
side, but it is not a cost-effective approach. And
cost is what is under fire right now with regard to
the contract, if I read the original post correctly.

I still strongly advise against per-project (a.k.a.
flat rate) billing. There are just too many problem
areas surrounding that type of arrangement, especially
if the client is already bitching about cost.

I do think the poster should meet with the client to
discuss why the costs seem high to the client, and
work to isolate certain tasks that maybe the
contractor could avoid doing to save money. 

For example, is this person required to attend
meetings in which/from which little is gained from the
contractor's involvement? If so, nix those meetings
from the contract and you'll save a few hours a week
in lost cost.

Try to cut out overhead tasks completely. There is no
reason why the client should need you to do them if
they are worried about cost. They can get an internal
person to do that work. Granted that has its own cost,
but that cost is relatively hidden when compared to 
that of a contractor's billing statements.

Work with the client to pinpoint specific tasks for
the contract, and bill hourly for those tasks. And,
when sitting on your thumbs, don't bill the client for
that time but IMMEDIATELY go to them and tell them
you're sitting idle. 

This is where 2ndary contracts and side research come
in handy. If you know you'll have 5 days of no work on
a contract after weeding out all non-vital tasks from
your hourly contract agreement, tell the client that.
If you can't work out a schedule that keeps you busy
at least 8hrs/5days a week, you can look for smaller
side projects to fillin that "lost time" on your end,
or spend the time researching new technologies or
building new skills, which will help you in getting
future contracts.

Priority is "money now" to pay the bills and feed the
mouths, but a close second is building knowledge to
help get future contracts, which may make more money
for you down the road.

There is always a compromise, but flat-rate billing is
one you should only investigate if you know EXACTLY
what you are doing. Otherwise, you as the contractor
will lose out on the deal one way or another.

=====
Goober Writer
(because life is too short to be inept)

"As soon as you hear the phrase "studies show",
immediately put a hand on your wallet and cover your groin."
      -- Geoff Hart

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