I read an interesting thing about project-based billing today, and it goes like this:
- When you do fixed-bid projects where the scope is not clearly-defined (which is the type of work I do almost every time), you are taking on risk for another party.
- There’s a word for taking on risk for another party: Insurance.
- And there’s a word for what people pay for insurance: A premium.
(source: Jonathan Stark)
So, if you are in the business of fixed-bid projects, make sure you are charging a premium for that insurance you are providing!