home *** CD-ROM | disk | FTP | other *** search
- Path: sparky!uunet!olivea!charnel!rat!usc!wupost!ultramac!
- From: mcs@wet.UUCP (Gil Nardo)
- Newsgroups: misc.jobs.contract
- Subject: Re: Fixed Price Contracts: Hourly info needed?
- Message-ID: <1992Dec29.030506.2808443105@ultramac.uucp>
- Date: 29 Dec 92 08:05:06 GMT
- Organization: Odyssey Ultraware, Inc
- Lines: 45
-
- cantwell@vuse.vanderbilt.edu (Jeff Cantwell) 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?
- > 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?
-
- My first contract was a fixed bid contract and was a useful learning
- experience (ie - bad way to start). The biggest problem with fix
- bids are that the requirements associated with them generally are
- not static, no matter how detailed they are made. There are two
- major problems. First, even though the requirements are understood
- by both the client and the contractor, the interpretations will NOT
- always coincide. Second, as the project progresses, seemingly minor
- changes creep into the specs, e.g., unforseen requirements or
- unforseen complications. The effect of these problems seems to go
- against the contractor.
- One possible way to protect yourself in these contracts is to not
- tie payments to deliveries, but to tie them instead to a regular
- interval. Other strategies include specifying cost per change
- and controlling milestone approvals.
- Good Luck!
- --
- Gil Nardo | mcs@wet.com
- Migrant Computing Services | (415)664-1032
- 1032 Irving Street, #435 |-----------------
- San Francisco, 94122 | Supernova = *!
-
-
- ------ Internet Message Header Follows ------
- Path: wupost!spool.mu.edu!agate!ames!pacbell.com!hoptoad!wet!mcs
- From: mcs@wet.UUCP (Gil Nardo)
- Newsgroups: misc.jobs.contract
- Subject: Re: Fixed Price Contracts: Hourly info needed?
- Message-ID: <4920@wet.UUCP>
- Date: 29 Dec 92 05:39:56 GMT
- References: <BzzFxJ.2L4@vuse.vanderbilt.edu>
- Distribution: usa
- Organization: Wetware Diversions, San Francisco
- Lines: 32
-