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I worked at a company where they'd switched from hourly billing to fixed costs not long before I'd joined. The incentive for the client was that there was no re
by alsetmusic 2y ago
I worked at a company where they'd switched from hourly billing to fixed costs not long before I'd joined. The incentive for the client was that there was no reason for the company to inflate job hours. The incentive for the company was to encourage longterm contracts for ongoing work. Seemed like a win for that particular environment. A bit different from an individual consultant, but an interesting case of comparing two models.
- spwa4 2y agoI've found multiple times companies switch back from fixed price as soon as managers realize it is a very easy way to extract a lot of money from their employer via their cronies. Fixed price sounds like a great idea, but if you can't trust management, even middle management, it will rapidly turn into a disaster.