[ale] OT: pricing structures for contracting

Fulton Green ale at FultonGreen.com
Sat Dec 28 00:02:53 EST 2002


The last project I did (website redesign) was 50% up-front and 50% at
delivery (which was understood to mean successful implementation).

I don't think it's out of the ordinary to ask for some up-front costs, but
be prepared to give them something tangible, such as a requirements spec (if
they didn't provide you w/it) as well as a design roadmap.  That way, your
client can have something to reuse should something go wrong between the
start of project and initial delivery (insert scenario involving you and a
wayward mass transportation vehicle here).  Depending on your potential take
from the project, you could also come up with multiple milestones /
deliverables with corresponding monetary percentages.

The really ambitious would also add in per-day penalties, but that's
advisable only if the client presents you with hard deadlines ahead of time.
If that's the case, you should be able to pad your final price a bit as
insurance for the unknown variables that could affect your project delivery
schedule and/or critical path.

Wait <slap/>, I'm sounding like a project mananger.  Must stop writing.

HTH

On Fri, Dec 27, 2002 at 10:56:30PM -0500, John Wells wrote:
> I'm in negotiations for a project and wondering what common pricing
> structures are.  I'd like to request say 20% up-front, %50 at delivery,
> and %30 after successful implementation.
> 
> What is common practice when it comes to these matters?  Am I out of my
> mind for asking for up-front pay?
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