Do you have clear Engagement Models?

Last updated by Sam Smith [SSW] 11 months ago.See history

It’s important to have clear options for how a client can engage your services.

You need to be clear on any differences between them in both billing and project management:

  • Time & Materials: Work to the client's specification, billing for the number of hours you accrue. The benefit of this type of development is flexibility – the client is able to add, remove and reprioritise development tasks during development.
  • Prepaid Time & Materials: Time and Materials clients have the option of a prepaid discount – buying blocks of 40 hours per resource in advance entitles them to a $15 per hour discount on the hourly rate of each developer. This discount scales depending on the number of hours bought (e.g. 80 hours = $20 off, 160 hours = $25 off). See the specific terms on Terms & Conditions.
  • Fixed Price: Fixed price contracts necessitate having a specification signed off before work commences. This spec can't be altered, so additional items must wait until the fixed price contract is completed. The benefit of this type of development is that your expenditure is fixed. Fixed price projects are charged at a 20% premium to the project cost based on the standard hourly rates.
  • Recurring: The client commits to a minimum monthly spend in return for a substantial discount on the hourly rates. This work is managed the same as Time & Materials work.
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