[webproducers] Re: requirements changes & contracts
- From: "John Carles" <johncarles@xxxxxxxxxxxxx>
- To: <webproducers@xxxxxxxxxxxxx>
- Date: Wed, 9 Jan 2002 13:57:07 -0500
I would be careful about a fixed bid in this situation. If the client is
together and has detailed requirements fixed beforehand, it's less of a
risk.
If the client likes to change requirements, and is now asking for a fixed
bid, there is a great deal of risk - contract or not. Not knowing enough
about the situation, I assume that the client's requirements changes
increase the project hours and your fee. Now the client wants or needs to
control costs. Instead of having solid requirements to keep costs down,
he/she is placing the cost control and risk on you.
If the requirements change, and you agree that change orders effect the
price, your time should be protected by the change order clause in your
contract. But that doesn't mean your client will be happy about paying the
extra money, and he/she may try to negotiate the price of the change. Your
could end up arguing over what was or was not included in the requirements.
Maybe it's more headache than it's worth.
If the requirements are set and are detailed enough for you bid on a price,
agree that all change orders will be done on an hourly or per diem basis at
your standard rate.
Make sure that you have a Statement of Work (SOW) that includes very
detailed requirements that you and your client sign. Include that with your
standard contract.
Below is a section from an SOW that precedes the signatures that I use. I
do not vouch that it is legally binding:
"This SOW document and all stated deadlines and pricing stated within are
good for 10 business days from the date of the signature below. If this SOW
is not agreed upon by the specified date, [YOUR COMPANY NAME] reserves the
right to amend, modify, or delete, any or all aspects of this SOW. Once
agreed upon this SOW represents all work that will be undertaken, at the
stated price and within the specified period. No alteration, amendments, or
additions to scope will be accepted to this SOW without an authorized and
signed Change Order representing an agreement to accept the scope changes by
both the [CLIENT'S NAME]and [YOUR COMPANY NAME]. This is meant to ensure
that the [CLIENT'S NAME] receives exactly the product they desire, in the
agreed upon time period.
----- Original Message -----
From: "Duane Douglas" <ddouglas@xxxxxxxxxxxxxx>
To: <webproducers@xxxxxxxxxxxxx>
Sent: Wednesday, January 09, 2002 1:11 PM
Subject: [webproducers] Re: requirements changes & contracts
>
> At 01:10 PM 1/9/2002 -0500, Richard Whitney wrote:
>
> >On a fixed price contract, make sure you have a comprehensive set of
> >assumptions outlined, as well as a clear requirements and/or scope
> >definition section. Be as detailed as possible. Add a "change order"
> >policy to your contract that defines what a change is, the change order
> >procedure itself and affiliated costs.
>
> i've previously heard of the *change order* procedure. i know that it
> relates to project changes. i don't know how such agreements are
> structured. what kind of thing is typically included in a change order
> procedure?
>
> tia
>
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