How to find fixed-price contracts (developer)

[JazzyFry]

Hi everyone,

I'm a full stack developer based in the UK, and so far I've been working on outside IR35 contracts with day rates. However, I'm interested in taking on another contract on top of my current one, but this time, I would like it to be a fixed-price contract so that I can manage my own time and avoid impacting my current contract.

My biggest challenge is knowing how to find fixed-price contracts. I'm not entirely sure how they work and how they differ from day rate contracts. Can anyone share their experience with fixed-price contracts and provide some insight into what I can expect? I'm particularly interested in understanding how to negotiate the scope of work and the price, as well as any potential pitfalls or challenges that I should be aware of.


Any help would be greatly appreciated. Thank you!

[Lance]

you don't 'find' fixed price contracts.

You need to find a client who wants a thing, then you offer to deliver the thing for a fixed price rather than T&M.
Agencies won't touch it with a bargepole so the first hurdle is find a direct client.
Or develop a product that other clients want.

in my experience you'd need to have done some T&M for a client first, or have a packaged product.


So as you admit you don't know how they work, nor how to find them, I'll not even start on the commercials of payment milestones, statements of work, penalties etc.

Personally I'd start with T&M estimated projects where you full control the delivery (a proper outside IR35 contract not just a paper one), and deliver them under budget repeatedly. Until you can do that don't put yourself at risk (remember if you fail to deliver under fixed price they'll take you to the cleaners if they can be bothered).

[jamesbrown]

You don't just "find them", which is why you haven't just "found them".

You need to tender for work, which may include FFP, T&M or some combination of the two.

But, realistically, you are going to struggle to succeed as a contractor (in the UK sense of that term) unless you: a) are one among a handful of people that can do the work; AND b) have worked with the client already, probably T&M; OR b) team with other, larger companies that have the capacity to bid for large projects. I tend to do (c), but it's only realistic because of (a).

There's no incentive for a larger company with a reputation in their field to team with a random coder and bid for work with large clients, for example. They can simply advertise afterwards. If you're a generalist IT person, forget about it.

You could also go down the route of defrauding clients and taking multiple T&M contracts at the same time without having the guts to tell the client or add appropriate terms to the contract. There are a few numpties around here that do this. Fine, of course, if you're upfront about it and you have the time - it's your life to waste.

[jamesbrown]

( Oh, and if you're gricer, you'll know what to do... )

[northernladuk]

And if you current contract stipulates 8 hours a day or similar what are you going to do? Only work on it weekends and evenings?

Even in a fixed price contract it's likely you'll be expected to be available to the client during the working day.

[courtg9000]

Fixed price stuff is out there BUT it is generally much smaller stuff for much smaller clients with much smaller £ value.
If you are looking for £100k value fixed price stuff with big name CV enhancing clients forget it. There are firms that do this, that are set up for it etc.

If however you are looking for £1-5k projects, there is stuff out there and quite of it BUT you will need to up your marketing game to get the business. These clients such as Porkie The Butcher of Malden Rushett won't be doing your CV any favours for a main contract but if it's spare income you are after it may help.

Marketing, marketing, marketing is key here. There are different rules for this business. Get networking. go to events, sponsor the local tiddlywinks team or the local tufty club branch, Sort your website, business cards, free pens (always a good one) brochures out etc.

[JazzyFry]

You don't just "find them", which is why you haven't just "found them".

You need to tender for work, which may include FFP, T&M or some combination of the two.

But, realistically, you are going to struggle to succeed as a contractor (in the UK sense of that term) unless you: a) are one among a handful of people that can do the work; AND b) have worked with the client already, probably T&M; OR b) team with other, larger companies that have the capacity to bid for large projects. I tend to do (c), but it's only realistic because of (a).

There's no incentive for a larger company with a reputation in their field to team with a random coder and bid for work with large clients, for example. They can simply advertise afterwards. If you're a generalist IT person, forget about it.

You could also go down the route of defrauding clients and taking multiple T&M contracts at the same time without having the guts to tell the client or add appropriate terms to the contract. There are a few numpties around here that do this. Fine, of course, if you're upfront about it and you have the time - it's your life to waste.

Thank you for some of this information

I can do the work as an IT specialist - I have delivered production ready applications for years and worked on some excellent products.

A tip: you are hard to trust when you react arrogantly to a post, from the get go.

[JazzyFry]

And if you current contract stipulates 8 hours a day or similar what are you going to do? Only work on it weekends and evenings?

Even in a fixed price contract it's likely you'll be expected to be available to the client during the working day.

Yes, I am intending to be working weekends and evenings, transparently.

I am indeed wondering if there is such appetite in the market for smaller T&C gigs as such.

[JazzyFry]

Fixed price stuff is out there BUT it is generally much smaller stuff for much smaller clients with much smaller £ value.
If you are looking for £100k value fixed price stuff with big name CV enhancing clients forget it. There are firms that do this, that are set up for it etc.

If however you are looking for £1-5k projects, there is stuff out there and quite of it BUT you will need to up your marketing game to get the business. These clients such as Porkie The Butcher of Malden Rushett won't be doing your CV any favours for a main contract but if it's spare income you are after it may help.

Marketing, marketing, marketing is key here. There are different rules for this business. Get networking. go to events, sponsor the local tiddlywinks team or the local tufty club branch, Sort your website, business cards, free pens (always a good one) brochures out etc.

Thanks! That is indeed exactly what I am thinking about. For bigger projects, I would have to create a consultancy which I am not considering for now.

I do think the era of websites coders is long gone with Squarespace, Shopify, no code and the likes. So rather engineering some custom applications in the cloud would be ideal.

[JazzyFry]

you don't 'find' fixed price contracts.

You need to find a client who wants a thing, then you offer to deliver the thing for a fixed price rather than T&M.
Agencies won't touch it with a bargepole so the first hurdle is find a direct client.
Or develop a product that other clients want.

in my experience you'd need to have done some T&M for a client first, or have a packaged product.


So as you admit you don't know how they work, nor how to find them, I'll not even start on the commercials of payment milestones, statements of work, penalties etc.

Personally I'd start with T&M estimated projects where you full control the delivery (a proper outside IR35 contract not just a paper one), and deliver them under budget repeatedly. Until you can do that don't put yourself at risk (remember if you fail to deliver under fixed price they'll take you to the cleaners if they can be bothered).

Does this apply to smaller gigs? (1-5k)