Re: Paid by the day

Subject: Re: Paid by the day
From: David Orr <dorr -at- ORRNET -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Fri, 9 Feb 2001 12:30:48 -0600

Day rates are very common in training development projects, or projects
where there is some travel involved. They usually involve 8-10 hour days as
John Posada described. I think the biggest advantage of them is their
simplicity in reporting and flexibility. My company accepts day rates
gladly.

Usually we use the high end of our hourly rate range and figure 8 hours at
that rate and call that our day rate. For example, if we usually ask between
$60 to $80 and hour, we multiply $80 X 8 = $640 day rate. This makes our
effective hourly rate $64.00, even if we work a full 10-hour day every day,
which rarely happens. We then use the higher rate of $80 an hour for hours
over ten. This discourages outrageous hours, but rewards us if they occur.

M. David Orr
Orr & Associates Corporation
http://www.orrnet.com


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