[consulting] Gouging Stupid Clients

[Alex Pavlovic]

Hi Nancy,

All I was trying to point out is that it further complicates the fixed price approach, since you need re-estimate on every change request. This puts additional 
burden on your resources. 

Change control process should always be follwed whether you are in fixed price or hourly mode, but has nothing to do with the point I was trying to make. Yes 
project managers are always a good idea :), and that's why we have 3 of them here. 


Thanks. 

On Thursday 23 February 2012 09:46:32 Ms. Nancy Wichmann wrote:
> Well, requirements changes should follow a change control process, which
> almost always modifies the fixed price. A good project manager should be
> on all larger projects and will be worth his/her cost.
> 
>  
> Nancy 
> Injustice anywhere is a threat to justice everywhere. -- Dr. Martin L.
> King, Jr.
> 
> >________________________________
> >
> > From: Alex Pavlovic
> >
> >You must be very good with estimating large and complex projects if you
> >can give fixed quotes like that. What if the project goes over your
> >estimated budget? Do you re-negotiate it or simply do the work for free?
> >We found that for large projects it is normally best to work with client
> >on an hourly basis, so it's fair to both parties and ensures precise
> >billing is done. There is lot of unknowns when dealing with large and
> >complex projects. Requirements may also change during the development
> >phase which furthmore complicates the fixed price approach. However a
> >rough quote or price estimate can be given to the client so they
> >understand what the ballpark figure may look like before you start the
> >work.

-- 
Alex Pavlovic - CEO
Taskforce-1 Industries Ltd.
http://www.taskforce-1.com
+1.888.630.5733
Google Talk: beyondcreed at gmail.com