Fixed price work

[scooterscot]

Hi guys,

Been offered a project (web site development) on fixed price terms.

Just after some advice from anyone that has done this.

I have PCG so can use one of those contracts.

But I'm after some in the field advice,

Is it generally paid after work completed? Escrow account?
How do I stop scope creep, I don't want to have my money held hostage for a million little changes after I've finished or something.

It's work from home, do I keep the code until payment? What is the norm.

Thanking you

Any fixed price work that comes my way I prepare a SOW [statement of work]

If you've not done one before now it's probably worth spending the time making a template now.

Once complete both you and the client must sign. It gives both parties the opportunity to see what will be done and what must be delivered for payment.

[mudskipper]

Depending on the size of a job, I'd suggest doing a detailed spec (chargeable) before finalising estimates for the whole job.

[TheFaQQer]

It's actually quite simple in practice.

Just agree what they are in logical stages and get each signed off as they are achieved.

Like managing any project, keep it simple and clear and then you can work on the techie bits in logical lumps without much mucking about with admin.

As long as there are clear milestones that you can set, it's straightforward.

I'd have a payment up-front on contract signature (e.g. 10%), then a further payment on as it makes sense (e.g. acceptance of functional specifications / technical design, delivery of solution into test, successful sign-off of testing, go-live...)

It gets complicated if there aren't as many easily defined milestones, and determining how much money should be paid at each milestone. I'd charge more at delivery into testing than go-live, for example - you never know whether they will go live, after all!

[TykeMerc]

staged payment milestones is a good idea...but sounds complicated.

It's actually quite simple in practice.

Just agree what they are in logical stages and get each signed off as they are achieved.

Like managing any project, keep it simple and clear and then you can work on the techie bits in logical lumps without much mucking about with admin.

[Mehmeh]

staged payment milestones is a good idea...but sounds complicated.

But maybe like VectraMan says, half after a prototype or something... takes alot of risk away..

Although Moscow mule has a good point...if its hosted on my server and only give the source once payed and signed off will ensure they sign it off if they want to be able to use it commercially.

Thanks guys

[Mehmeh]

Host it on your own server, let them do their own UAT (as live).

Fix any bugs they find, once signed off & paid, let them have it to deploy on their server.

Or do this:
http://thedailywtf.com/Comments/Mayb...ing-Later.aspx

Sweet thanks mate.. will probably go for it like that...

or
//maybe am needing this later

[VectraMan]

I did it for a bit of short term work once, and with that I built a prototype before I started so I could say "this is what it's going to do", and then implemented it for real. But obviously you need a certain amount of trust, or have to spend more time and money than it's worth on lawyers and contracts and specifications.

I adapted one of the PCG contracts for that, and had a half way milestone (although with 30 day payment terms I didn't get the first payment until I'd finished the project).

[Moscow Mule]

Host it on your own server, let them do their own UAT (as live).

Fix any bugs they find, once signed off & paid, let them have it to deploy on their server.

Or do this:
http://thedailywtf.com/Comments/Mayb...ing-Later.aspx

[TykeMerc]

Is it generally paid after work completed? Escrow account?
How do I stop scope creep, I don't want to have my money held hostage for a million little changes after I've finished or something.

It's work from home, do I keep the code until payment? What is the norm.

Thanking you

Speaking as a PM not a coder...

That's all a matter of careful negotiation and being cautious about signing off the work definition and requirements.
Staged payment milestones are fairly usual, of course those have to be agreed and written into the contract quite carefully.

[Mehmeh]

Hi guys,

Been offered a project (web site development) on fixed price terms.

Just after some advice from anyone that has done this.

I have PCG so can use one of those contracts.

But I'm after some in the field advice,

Is it generally paid after work completed? Escrow account?
How do I stop scope creep, I don't want to have my money held hostage for a million little changes after I've finished or something.

It's work from home, do I keep the code until payment? What is the norm.

Thanking you