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I only do fix priced contracts with a lock solid list of tasks. Usually it's smaller in scope and clearly defined. I spell out that any deviations are costs out
by ganoushoreilly 2y ago
I only do fix priced contracts with a lock solid list of tasks. Usually it's smaller in scope and clearly defined. I spell out that any deviations are costs outside of the original pricing.
As another poster mentioned, you very much have to be selective. A lot of time our first contract will be a fixed price with a client to show our ability to deliver, so in that instance we lose a little to gain a client. It's a balance and it's not an easy life for anyone.
Consultants can be beaten and battered on behalf of an internal team and those that are good realize that in many instances that's what you're hired for.
- milesvp 2y agoThe advice I’ve heard in the general contractor world, is fixed bid only works if you charge appropriately, and are very quick with change orders. As soon as it looks like the scope is changing, be it a request from the client, or some new thing is exposed (often literally). I’d expect the same is necessary for software consulting. The bigger problem I don’t hear discussed in any of these threads, is that you can only estimate jobs you’ve done before. So, to do fixed bid profitably, it really requires that you are specializing in some set of deliverables. This, actually has some interesting benefits as well, one, is that you can charge a lot more over time, and you can become very efficient as well, which leads to a high profit per effort ratio.
- ganoushoreilly 2y agoYep it's very much based on a consistent repeatable scope.