Offered short contract based on deliverables

[WordIsBond]

Pretty simple. Get clear specs on what is to be delivered, including testing specs as noted. Estimate the time it will take you. Bid a cost.

You take on the risk of time overruns, etc. Bid high accordingly -- enough to cover overruns of at least 10%, PLUS compensation for the risk, say another 10%. After that, it depends on how precise the specs are and how confident you are in your estimate of how long the job will take. If there is any imprecision in the specs, or you aren't confident, bid higher. And the bigger the job, the more uncertainties.

It's just one more risk to build into what you charge. When you decide to be a contractor instead of an employee, risk is part of the game anyway, and you are paid extra for the risk of not being a permie. If someone is afraid of this risk, I'd wonder why they want to be a contractor. But if someone doesn't CHARGE for taking on the risk, I'd say he's not much of a businessman. Any client who wants you to absorb the risk should expect to pay for that.

Also, watch your cash flow. If it is a four week job, bid it at five weeks to protect you from overruns. If it really does take five weeks, you break even and all is good, right? But will you run out out of cash before you get paid? You are probably only paid when the job is completed. If this is a problem, perhaps you can schedule an intermediate deliverable, specific targets which, when achieved, allow you to invoice half or a third of the cost.

[d000hg]

Contract on defined deliverables, eh?

Is that something 'real businesses' do?

Yes, all the time.

[Antman]

It's a great IR35 defence (even if it's only a 4 week contract ).

Like the others have said, if you can get acceptance criteria nailed down then you're safe and some way for handling the inevitable CRs, could also do another 9-5 somewhere else at the same time - ker-ching!

[Contreras]

Contract on defined deliverables, eh?

Is that something 'real businesses' do?

Run for the hills?

hmm...

[vadhert]

Run like the wind.

Sounds like someone left behind a load of tulip for you to sort out in a short time.

[yasockie]

I still wouldn't take it and propose to bill for the time and materials on daily rate.
In 4 weeks requirements can change a lot.

[BlasterBates]

Delivery only with an Acceptance test specification which defines the outputs of your "bit".

You need the acceptance test before you implement. They need to sign off on the acceptance test spec.

Then it's water tight.

It shouldn't take more than a couple of hours to define one when you sit down with the customer.

General specifications are great but open to interpretation "oh I meant this" Test specs don't lie.

If you find the test spec becoming unwieldy and larger and larger you know you have a badly scoped project.

[northernladuk]

Make sure the criteria for signing that deliverable off is watertight so the client can't refuse to pay because in their opinion the deliverable isn't complete.

[cojak]

Also insist within the contract on a review of pricing should they want to change that 'finalised' specification.

[eek]

Hello All,

I have been offered a short contract that's based on deliverables. It's about 4 weeks long to join a development of a website halfway through.I have said I will need to do an assessment of what's been done before committing to any timescales.

Has anyone else had one of these contracts? Pitfalls...

Thanks for listening

• Do they have a finalised specification?
• can you do a gap analysis of what is missing?
• is pay purely dependent on what you are deliverying or would you be dependent on the output of others?
• Does the fee cover enough to make up for the risk of 4 weeks work without pay? (Most consultancies add a 50-200% premium for fixed rate work if they accept such work, many outright refuse)..

[JuanSheet]

Hello All,

I have been offered a short contract that's based on deliverables. It's about 4 weeks long to join a development of a website halfway through.I have said I will need to do an assessment of what's been done before committing to any timescales.

Has anyone else had one of these contracts? Pitfalls...

Thanks for listening