[thelist] Project Price

[Ken Schaefer]

I don't understand why this is a "unique situation". This has been covered on this list before.

If you do "fixed price" work - then the price is fixed, and you bear the risk. It seems that:
a) you haven't fixed the price (why are you haggling about $4k versus $2.5k?)
b) you haven't fixed the scope of work. If the scope of work changes, then you raise a "change request" with the customer and negotiate an appropriate price for the alterations from scope. If the customer doesn't agree, then you deliver to agreed spec only. It seems that this was never done.

> This is also why I don't (almost never anyhow) work on a fixed price
> basis.

If you want to work on "time and materials" then that's fine - the client takes on the risk. But not all clients are prepared to accept that. Some want "shared risk" and some want "fixed price". You need to be aware of what the various risks are in each situation.

Cheers
Ken

-----Original Message-----
From: thelist-bounces at lists.evolt.org [mailto:thelist-bounces at lists.evolt.org] On Behalf Of Fred Jones
Sent: Monday, 3 December 2007 11:00 PM
To: Thelist
Subject: [thelist] Project Price

I have a unique situation with a client. He wanted a website over a year
ago and I began it, for a fixed price. After a bit of work, he said he
would get back to me with a new graphic design. That took him over 6
months. I then couldn't work on it so we tried to outsource it, three
times. All three failed.m :(

Finally I felt bad, as he was waiting for a year, and he's also sort of
a friend, and I said to him I will make time and do it. The project had
changed, however, and we didn't discuss the new price, because anyway I
will accept what he wants to pay. He is very trustworthy and honest and
I know him.

My bill (according to hours worked) is now $4K and he says that he spoke
to BIG internet companies and they said they would have done his job for
$2.5K. He preferred to stick with me, but now he doesn't think he should
pay more than he would have paid with them.

I tried to explain that in the end of the day, he would NOT have paid
$2.5K with them--he would have paid more. He has a hard time accepting
that. Can anyone back that up with experience? I know myself that not
one project of mine actually came out in the end as simple as we thought
in the beginning, save perhaps a few very small ones.

This is also why I don't (almost never anyhow) work on a fixed price
basis. See here too, "The Cone of Uncertainty":

http://www.construx.com/Page.aspx?hid=1648