Re: More annoying requests for advice

Subject: Re: More annoying requests for advice
From: "Gene Kim-Eng" <techwr -at- genek -dot- com>
To: "Keith Hood" <klhra -at- yahoo -dot- com>, <techwr-l -at- lists -dot- techwr-l -dot- com>
Date: Tue, 27 May 2008 15:45:14 -0700

I think it varies by region. In CA, particularly in
Silicon Valley, the markup on W2 contractors
who are considered "high rate" vs clerical is
closer to 1:1 (that is, agency charges client 2X
what the person is paid). Markup includes the
agency covering the employer half of Social
Security and paying all state UI, disability,
workmens' comp, payroll taxes and other
government-mandated costs. If your client is
requiring you to document that you have
equivalent coverage for the above you should
be able to bill at the same 2X-3X an agency
would charge; if not, the client is going to expect
that you carrying your own contract will save
them something compared to what they would
pay an agency to ensure that all state-mandated
i's and t's have been dotted and crossed.

Billing by hour or by fixed-price depends on
how predictable the client's development process
is. If they operate like a well-oiled machine and
can deal with your contract specifying a fixed
number of reviews and updates with extra fees
for each and every change they need, fixed
price may be the way to go. If they bounce off
walls and expect you to turn on a dime with every
new bounce, then it should be by the hour.

Gene Kim-Eng

----- Original Message -----
From: "Keith Hood" <klhra -at- yahoo -dot- com>
> If I understand it correctly, it's common practice
> that a contractor's pay is about 1/3 what the client
> company pays the contracting company. Does that sound
> correct?


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More annoying requests for advice: From: Keith Hood

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