If you are time and materials, they pay (AKA you get paid by the hour worked). If you are fixed bid (AKA 100k for this project), you eat it. It is simple as that. It is all about risk, on time and materials, you are basically agreeing to the client taking the risk of cost overruns which usually results in a lower per hour cost. On fixed bid you are agreeing that you are going to take on that risk for the client. It usually comes at a price to the company (I triple my rate). If you are time and materials, ethically it is the clients responsibility to shoulder the risk and pay you for every hour worked.
i agree with kls... it depends on your initial agreement. i rarely do fixed cost projects. i would only consider it if there is a solid specification, which is rare. otherwise they will nickel and dime you to death. also on the invoice, don't put "fixing bugs" or stuff like that... use words like "change" "modify" etc.
Comments
If you are time and materials, they pay (AKA you get paid by the hour worked). If you are fixed bid (AKA 100k for this project), you eat it. It is simple as that. It is all about risk, on time and materials, you are basically agreeing to the client taking the risk of cost overruns which usually results in a lower per hour cost. On fixed bid you are agreeing that you are going to take on that risk for the client. It usually comes at a price to the company (I triple my rate). If you are time and materials, ethically it is the clients responsibility to shoulder the risk and pay you for every hour worked.
i agree with kls... it depends on your initial agreement. i rarely do fixed cost projects. i would only consider it if there is a solid specification, which is rare. otherwise they will nickel and dime you to death. also on the invoice, don't put "fixing bugs" or stuff like that... use words like "change" "modify" etc.