Billing per project...
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- e-pill
ok...i have a new client who is asking for me to bill them on a per project basis.
i personally never worked this way as all my freelance contractual work was on an hourly basis.
i really do not know what i need to make in the contract that protects me and the project at the same time.
also i am not sure how to estimate the timing as in my past i worked til it was correct no matter if it was done once or 50 revisions, in the end i got paid for all my time.
this project is very specific in what the client is asking for.
they want 7 different product categories concepted all the way thru engineering to final production product.
they have laid out their deadlines and their marketing directions.
this is a small company that is semi vertical, but has super potential to be greater than it is.
they are currently an apparel company that does trendy urban clothing that retails at openning price points as $60 for tees and all the up $400 for jackets.
they want to expand their product categories to accessories which is where i come in.
can i get examples of what i need to make sure i have in the contracts that protect me and what wordings do i must need to have in there as well.
in terms of revisions how many does one allow before you ask for more money??
also does one usually get half up front and then 25% at the half way mark and 25% and the finish??
any help is GREATLY APPRECIATED!!!!
thanks!!
-e
- e-pill0
also on an hourly basis i charge $65-75 per hour...if that helps.
- harlequino0
You can estimate how many hours on average something like that will take, maybe shave a bit off, to keep them interested in coming back for more projects, and voila, the price per project. Then just stipulate that this cost is based on X hours/project, and that if exceeds said hours by Y%, you can charge additionally.
And I generally do a 40% - 60% split on project estimates, if that helps.
- e-pill0
a lot oftimes in my end of the business the hours exceed way past weeks...
so im not sure how i need to figure out this number.
- e-pill0
is it better financially to charge by the project over hourly?
- harlequino0
Can you look at any past projects and figure out on average how many hours a project goes over? Like say maybe 20%? And then fold that into your cost?
Something also to keep in mind, to give them a cost per project, they gotta give a little too. Stipulate that since this is per project, they can't go over X amount or revisions, or something like that. Just frame it like a package deal, and be very specific, so if there are overages, you can CYA.
- blaw0
when billing on a per project basis you need to make sure the specs. are detailed up front. make sure you put in writing exactly what they are getting for the money.
the next thing is to keep a sharp eye on the project. it'll be your responsibility to identify scope-creep and say, "this is not in the original spec. and will cost an additional $X.
lastly, definitely build in project management time. a lot of times i will multiply by 20%, say, "holy shit, that way too high." and then come up with a lower number. :)
- joyride0
I do my estimate based on 2-3 revisions, after that, it goes to my hourly rate for revisions, invoiced weekly.
4. Non-Estimated Fees
4.1. Any additional hours required to complete the project beyond the hours estimated in the proceeding pages will be documented and billed at a rate of $XXX.00 per hour up to 20% over the cost of the original estimate.
4.2. Client will receive itemized billings weekly for such hourly fees performed.
4.3. Any additional billable hours beyond 20% of the original estimate will require client approval in advance of such work being performed.
4.4. Client shall not be charged for services performed by XXXXXX resulting from technical or mechanical failures, neglect or misconduct by XXXXXX.And normally, somewhere in the contract, is the 3 revision limit, more then that goes to hourly.
- e-pill0
i think the concepts and the initial design can take me a week for all 7, but specs and production and engineering can take months...it all depends on the quality of the factories.
so this number for me is hard to calculate as outside factors are also very muchg in the process but their timing is not known.
i was figuring that i would present a contract that i would concept 3 designs for each of the 7 products with multiple colourways. give them a choice in direction. once the concepts were chozen i would give them up to 2 revisions on each. then i would go to step 2 which would be specs and there i would have 2 revisions pending factory first concept protos if needed to final production piece.
does this sound ok??
- e-pill0
kev-
can you email a copy of this contract? seems i have a lot to learn and you gave a lot of points i would not have done or really missed on.
- hiatus0
looking to do some freelance work, and would like a contract I can use...
can someone EM me one or send/post link to contracts to use.
much of the info. spoken here so far is insightful!!
BIG thanks!
- e-pill0
looking to do some freelance work, and would like a contract I can use...
can someone EM me one or send/post link to contracts to use.
much of the info. spoken here so far is insightful!!
BIG thanks!
e-pill
(Sep 14 07, 07:03)