Re: contract fees [long]

Subject: Re: contract fees [long]
From: Kat Nagel/MasterWork <katnagel -at- EZNET -dot- NET>
Date: Sun, 20 Aug 1995 08:31:51 -0400

Patricia Falzon wrote:
--------
I have been approached to write and format some promotional materials on a
contract basis. I'm very familiar with this particular type of work, but
have never provided this service on a contract basis before. I will have to
spend some time in meetings with the client, clarifying his needs, sales
pitch, etc. Can anyone tell me whether it is appropriate to apply my
hourly fee to the time spent in meetings with the client? Thanks!
--------


<insert stock answer>
Well, it depends.
<grin and duck>

I handle it a bit differently for each client, and I (usually) write it in
the ASSUMPTIONS section of the contract, as well as the COMPENSATION
section.

If I am being paid by the hour, I bill for all in-person meetings at the
client's site (except simple pick-up/drop-offs) after the initial
interview. I also (usually) bill for all phone calls that last more than
15 minutes, and all meetings at my office that last more than 30 minutes
(if they do the travelling, I give them a break).

For flat fee contracts, I estimate a reasonable amount of billable time for
research, which includes information gathering from the client and SMEs. I
also specify a maximum number of review meetings and a maximum total
duration (in hours). I add a statement that additional meetings will be
billed a an hourly rate of $x. For new clients, I negotiate a rate from
50% to 75% of my normal rate for idea-work (higher than production-type
data entry). For repeat clients, the rate depends on previous experience:
whether meetings are usually at my request or theirs, at my office or
theirs, how far I have to travel, and how often they typically request
useless chat sessions.

I never bill for sales pitches or for preparing short proposals. Longer
proposals (including significant design work) are another story. For
those, I include the proposal as the first item in the DELIVERABLES section
of the contract. If I get the project, I invoice them for the first
deliverable. If I don't get the contract, I eat the time and write the
materials off as marketing expense.

Occasionally I have a project where the SMEs gather for periodic team
problem-solving sessions. Those are valuable enough so I try to get there
even if the client won't pay for the time.

OTOH, I once had a client who insisted that I attend all routine weekly
department meetings. Ugh. For subsequent projects with the same client, I
changed the contract. If _I_ requested a meeting (or wanted to attend a
routine meeting), I did _not_ charge for it. If _she_ requested me to
attend a meeting, she paid double my normal hourly rate. Result? Fewer
meetings, more productive meetings, and docs delivered ahead of schedule.
Everyone was happier.

Sorry for the loooong answer to a short question. Hope your project goes well!




@Kat
Kat Nagel LIFE1 (techwriting) katnagel -at- eznet -dot- net
MasterWork LIFE2 (music) PlaynSong -at- aol -dot- com
/|
\'o.O' God respects me when I work,
=( O )= but He loves me when I sing.
_ _____ Rabindranath Tagore

-sig looks best in monospaced font/60+char screen window-


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