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> Was that in recommendation adding business value and not being hourly labor or something else? A combination usually, with benefits to the client too: - Cl
by seanwilson 6y ago
> Was that in recommendation adding business value and not being hourly labor or something else?
A combination usually, with benefits to the client too:
- Client + contractor aren't both wasting time with micromanagement that could be put into adding business value instead.
- Contractor is incentivised to work smarter, finish tasks quicker and keep the business goal in mind.
- Client can budget because they know the final price.
- Contractor is happier and less stressed because they're not being micromanaged.
These are all flipped with hourly.
Fixed price will be horrible for the contractor if they're not charging enough and controlling scope creep though, but with hourly the client is taking the business risk instead.
- sitkack 6y agoWhat you are describing is a healthy client relationship. The pricing model has certain affordances, but fixed price doesn't make everything better. As I have aged, I am less likely to do fixed price work unless it has a lot more headroom.