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- Path: sparky!uunet!olivea!news.bbn.com!noc.near.net!mv!tixel!jarnold
- From: jarnold@tixel.mv.com (Jon Arnold)
- Newsgroups: misc.jobs.contract
- Subject: Fixed Price Contracts: Hourly info needed?
- Message-ID: <725676384snx@tixel.mv.com>
- Date: 30 Dec 92 00:46:24 GMT
- References: <BzzFxJ.2L4@vuse.vanderbilt.edu>
- Reply-To: jarnold@tixel.mv.com
- Lines: 42
-
- >In article <BzzFxJ.2L4@vuse.vanderbilt.edu> cantwell@vuse.vanderbilt.edu writes:
- > I am just about to write my first contract. A fixed price contract
- > seems like a good idea. Is any hourly information normally included in
- > such a contract? For example, that person A will be available for up
- > to 40 hours per week, and person B will be available for up to 20
- > hours per week? Or is such information excluded, and only deliverables
- > and total cost specified?
-
- The way I've usually seen this done is with several components:
-
- * CLEARLY state the deliverable or end result of your work.
- * CLEARLY state the milestones and the date at which each milestone will
- be completed. Also state the date that the end result will be done.
- * If applicable, CLEARLY state what "acceptance test procedures" will
- be done by you and the customer (usually done jointly) so that your customer
- can SIGN OFF (get it in writing) that you have indeed done what you said
- you were going to do. For a complex project, the ATP can be a good-sized
- document of its own.
- * CLEARLY state dependencies; ie, at point 'x' the customer will be expected
- to provide 'y' so you can continue. If 'y' is not or cannot be provided
- at point 'x', then the pursuant milestone dates get pushed back.
-
- Make SURE your customer understands all these points, especially the last
- one. I've not normally seen hours stated, except when it's required by
- the customer's bean-counters to justify the price. If you put in writing
- that you can accomplish <work statement> in two weeks, and the customer
- signs off on that, then it's YOUR problem to either work 2 hours/day or
- 23 hours/day to meet your deadlines & milestones.
-
- > Also, can the client be charged for delays in providing needed data or
- > software? If so, how is this normally done? Or is it better to state
- > the requirements in the contract, and just not do anything until
- > needed materials are provided?
-
- See above.
- Jon
- ----
- Jon Arnold
- Nashua, New Hampshire Fax: W: 603-883-7350
- H: 603-883-6371
-
- "If you ain't the lead dog, the view never changes."
-