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- From: bobert@informix.com (Robert Murphy)
- Newsgroups: misc.jobs.contract
- Subject: Re: contract payment methods question
- Message-ID: <bobert.724629938@godzilla>
- Date: 17 Dec 92 22:05:38 GMT
- References: <1992Dec14.220237.244@netcom.com>
- Sender: news@informix.com (Usenet News)
- Organization: Informix Software, Inc.
- Lines: 50
-
- pdh@netcom.com (Phil Howard ) writes:
-
- >One method of payment which gets some bandwidth on here is the salary/1000
- >hourly rate. I assume if one travelled around, this rate would also have
- >to reflect the costs at the geographic location of work.
-
- Absolutely. Living costs can be radically different in various parts of
- the country. For instance, the $400/month that got me a luxury apartment
- in Fort Worth, Texas, would get me a hearty laugh in San Francisco.
-
- >However another method would be a negotiated fixed amount for delivery of
- >the completed project, regardless of costs and/or time. The details of an
- >agreement may actually include certain factors. My question is whether or
- >not this is in common practice where the parties would agree to it. I would
- >expect this to be most applicable to small or medium development projects
- >generally involving a single person.
-
- My partner and I prefer to do this sort of "firm-fixed-price contract".
- Coming up with a realistic bid price and structuring the contract so
- nobody gets hurt is an art we're still learning. We've done about five
- times as many contracts this way as we have by the hour.
-
- >Are there any alternatives to payment methods for non-development work
- >such as systems administration. I would hope the hourly rate applies
- >to times when you get those 3am phone calls. But is this real? What if
- >the "employer" claims that the late night calls are just you dealing with
- >the "problems" you didn't prevent in routine configurations, etc?
-
- Speaking of this kind of thing, my partner and I are having a problem which
- perhaps somebody here has an answer for. We're working on a project
- which is basically to write an interface layer so that the client's
- proprietary library code can be called from an Windows Excel spreadsheet.
- These libraries had previously been ported to Lotus 123 for DOS and Unix,
- and Wingz for the Sun, and also sold as independent libraries, so we
- assumed they'd been thoroughly tested... heh heh...
-
- Well, over 80% of the bugs that have been reported against our project
- have turned out to be in the client's libraries. Fixing these libraries
- is both outside the scope of the contract and far outside our expertise.
- I'd guess we've spent an aggregate of 2-3 man-weeks on these bugs, and
- the whole project was only supposed to take 2-3 man-weeks. I can also
- honestly say that there was no way at the beginning of the project that
- we could have expected this kind of overrun.
-
- Right now, we're just eating the extra time. In the future, though, what
- should we do? Should we build an automatic price increase into our
- contracts for extra work caused by client screw-ups? Are there other,
- better ways of dealing with this sort of thing?
-
- Bob Murphy
-