[Hidden-tech] Consulting fees?

Theo Matthias theo.matthias at gmail.com
Thu Aug 10 10:38:42 EDT 2006


Also, to underscore a point that Jonathan made about development project
scope...

I found it easiest to manage my projects by working with the client to
develop a clearly (and carefully) written "Functional Specification". This
document explains (in user-understandable wording) how the user will
interact with the system and what will be expected of its operation. You and
the client should sign-off on this document.

You will encounter two kinds of changes to what is presented in this
document: (1) programming changes needed during unit and/or integration
testing of the specified system and, (2) expanded functionality requested by
the client. The former is part and parcel of developing a robust,
user-friendly deliverable. The latter is discretionary and generated by
desire rather than necessity to deliver the product as specified.

Handling the expanded functionality issues can cause the most problems and
easily make profitable projects go bad! I handled the requests for expanded
functionality with the use of written "Change Orders" that were considered
only after the original (agreed to) deliverable was approved (and paid for)
by the client. By waiting until after the end of the project, a few Change
Orders disappeared; the remaining were seen in a new light and were easy for
the client to prioritize. They were also easier to estimate, since the
execution of some Change Orders could be logically "bundled", saving me time
and the client money.

If you're not doing project development, some of this can be applied to
other types of consulting work. The object is to deliver what is specified
on time, and consider changes within a separate process.

FWIW,

Ted Matthias



On 8/9/06, Jonathan Dill <jfdill at jfdill.com> wrote:
>
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>
> Seth Seeger wrote:
> > -How much do I charge for site-visits?
> > -How much do I charge for phone/email support?
> We have 2 different price scales for "retainer" customers vs. one shot
> deals.  Retainers get a better rate, and usually pay something standard
> for mileage depending on where they are located.
>
> For a one shot deal, we charge a higher rate for the first 1/2 hour to
> cover travel time and mileage and to cover ourselves if someone ends up
> wasting our time, and then a fixed rate after that.  Some customers also
> have a one hour minimum, usually if they are located farther away.
>
> How much you charge should depend on the type of work that you are doing
> and your level of expertise.  We charge less if we are able to handle
> something remotely, via phone or e-mail, but we still charge something.
> > -Do I charge for travel time?
> Depends on the type of work that you are doing and what you think you
> can work out with your customers.  For some of our retainers, if we have
> to drop what we are doing to go take care of an emergency, we charge for
> time from the minute we head out the door.  We are less likely to do
> that for a one shot deal, because the hope is that it will lead to
> future business.
> > -Should I worry about a contract?
> Absolutely positively.  You want to be very clear about what is included
> in your service, and what is and is not guaranteed.  You don't want to
> open yourself up to be responsible for every single thing that happens
> to somebody's computer after you walk out the door.  Sometimes stuff
> just happens, especially on Windows--if you are dealing with a
> non-techie and you were the last person there, they are likely to blame
> any problems on you whether it had anything to do with what you did or
> not.
>
> 99% of people will act on good faith, but every once in awhile you could
> run into someone who will try to take advantage of you, then you need
> that contract to fall back on and make sure you get paid.  I use the
> "Judge Judy" test--What would Judge Judy say if this was a case in small
> claims court?
>
> If this is for some kind of development project (e.g. software or web)
> you should be very clear about what the deliverables are before you sign
> a contract or start any work.  If the customer wants you to do work that
> is outside the deliverables / scope of work, you may need to remind them
> that isn't in the contract and will cost extra, possibly under a
> separate contract depending on how involved it is.
>
> Also consider any "admin time" that will be involved in the project,
> like meetings, R&D, site survey, any "reverse-engineering" you have to
> do for example if the customer has poor or no documentation.  I don't
> know if it's better to quote a higher rate to try to cover some of that,
> or have an understanding that will be billable time.
>
> Jonathan
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