[thelist] Fixed Cost Estimations

[Fred Jones]

In response to the recent thread about T&M vs Fixed Fee, I have a question.

First I will note that I never had a Materials cost, just a Time
one--all I do is make web sites. :)

Anyhow, I think everyone knows about the "Cone of Uncertainty" which
means that my estimate today, before the job begins, is up to 4x off.
Therefore it would appear to me that if I do fixed fee, I would charge
my hourly rate times my estimate times FOUR.

An older developer (a friend of mine) told me the same thing once--he
said to multiply by between 2 and 5 if I do fixed fee. Is that what
people do?

I have someone just now who is asking about a fixed fee for a site
rebuild. I told her that I would *probably* be willing to do it for 4
times my estimate.

Just checking in with thelist about this however :)

Thanks,
Fred