The fixed priced project strikes back

The main reason to go for a fixed price project is that the client knows how much the project will cost. We understand that. We’d also argue that this is the only reason to go for a fixed price project.

6 comments | Got something to add?

Yeah, development work is full of time sinks and black holes, even moreso when a design isn’t absolutely watertight, and as you note, clients have bright ideas, design evolves. Many go for a fixed price plus an hourly rate for changes from the schedule. It is probably more about relationship though. If you & the client don’t know each other then a small project with fixed pricing (and an hourly rate for changes) is probably ideal just to get to know them and work out if you’d want to do future projects with them.

By Matt on 26 Jan '12 | Tweet | #62
Yep… having a fixed element tho, does require a very clear set of definitions of what is and isn’t included.

From the few times that I have worked to a fixed price quote, I find that point where the client asks for something not on the spec list (and they *always* ask for something - not because they’re being difficult, it’s just the very nature of a creative project - it’s a good thing and needs to be encouraged in clients, but…) I then have to keep having the awkward conversation of “that’s not actually in the original brief so it’s not possible to do” “Well how hard is it? How long will it take?” “How long is a piece of string…”.

Too easily it seems to bring the relationship back to money and how much can be done without paying any more.

By Andy on 26 Jan '12 | Tweet | #63
I think the way you’ve presented your hypothetical situation is a tad inflexible. In my case, the situation would more likely run like:
- Client wants to make changes.
- You make a judgment about what can be fitted in within the budget previously agreed upon and do what you can.
- If that doesn’t cover everything the client wants done, then you enter into a separate negotiation about what will be required to complete the work and bill it as a separate item.
- Only then if the client is unwilling to pay the extra do they end up with something that possibly they’re not 100% satisfied.

But I’ve never had the last scenario happen to me. Once they’ve started working with you and get to understand the process a bit better, and understand that you’re trying to be as accommodating as possible, they’re happy to cover the extra expense because they can see how the changes they’re wanting have moved the goalposts.

By the way, I first read this article on an iPod Touch and when I clicked on the comments buttons above and below the text nothing would happen.

By John Faulds on 26 Jan '12 | Tweet | #65
Yeh - I know I can be a little prone to hyperbole and try to paint a scenario that is on the extreme ends of things!… I have seen situations where similar have happened tho.

Luckily we’ve not really had any clients that have pushed us like that, but the potential for it to happen is far higher when you have to work to a strict set of guidelines as the strength of your case for charging for additional work is only as strong as how tight the details you can fall back on are… which all comes back to how much time you spent creating that spec document in the first place.

I’d prefer to start, from the outset, on the basis that the client gets what they pay for, no more, no less. If a client asks for new / different stuff or UX considerations come up that need additional time, I’d prefer the flexibility to say one parts taking a little longer, but look at it the context of the overall project budget where features can be prioritised and resources reallocated.

And thanks for the tip off regarding the iPod touch comment button - good to know!

By Andy on 26 Jan '12 | Tweet | #66
Part 3 is now up - http://moogaloo.com/blog/return-of-the-flexibly-priced-project/

By Andy on 27 Jan '12 | Tweet | #73
Good to hear that sounds specially for the fixed priced project indeed. I guess this impression would be supportive for the small business contractors. Thanks for pop up brilliant news!

By bodycare on 15 Feb '12 | Tweet | #82

To reduce comment spam, we've closed commenting on this article.
If you'd still like to talk to us about it, contact us on Twitter or through our contact form.

Moogaloo

digital design boutique

The Blog

The fixed priced project strikes back