A contract for a changeable price?

[bamme]

Hi all

I was just wondering, as I'm sure you guys have had the same in the past, how to write up something to secure a project with a price that may change -- I'm going to outsource parts of it (I've told them that) and this will affect the price as I'm not sure how much the outsourced parts will come to, nor the time taken to illustrate what's needed to the outsourced person, draw up a storyboard for it etc (it's Flash).

So, if anyone knows, could you tell me what you did?

 

[Levi]

Personally I'd go something like this, might need to worded slightly better but it gives you the idea

Quote for the cost of my work, stating which parts I am doing and then add in a bit stating that any outsourced work, include what this is in the quote/bid if you can, will be additional to the price quoted below. Maybe add outsourced work prices to be confirmed into it to so as to show that prices haven't been arranged yet.

I'd also state that any outsourced work would be charged with no additional costs and would require payment within 2 weeks (most companies I've dealt with give 4 weeks to pay) - I'd also be able to show them the receipts etc if needed

 

[bamme]

Thanks Levi Some of the work will be mine though, ie drawing up storyboards, writing brief for the outsourced person, making sure he/she understands and its coherent enough, etc, which in my experience without being 100% sure the outsourced person is going to catch on right away and produce something spot on in their first attempt, does take a while. So if I was to write a contract sorta thing with a little "*" by the price, and write something like

* Price of outsourced work, and time spent sourcing, briefing and creating resources for the outsourced job, will vary and affect overall cost.
* Overall cost will not exceed X amount
* No further charges ontop of fees charged by outsourced person, and time spent carrying out the above, will be added to the overall cost.
* Receipts can be provided for outsourced work.

(Again worded better)

.. Literally right there on the contract, would this be okay?

 

[Levi]

Well I'd include the time spent outsourcing, briefing and creating resources as part of my part of the quote, just do an estimate of how long you think you will take and then add a section stating that these parts (not sure what on yours) of the brief would then be outsourced and charged at cost.

I would not put overall cost will not exceed X amount purely as that could lose you money if they keep changing things. However I do include the line prices subject to change (or words to that effect) on any quotations just in case things do change, it also allows me to change the price if they alter things (I talk to them first obviously) or if their requirements were not properly described to me during the brief etc.

Also I'd consider what you're doing here as more of a quotation (use a reference code) than a contract, a contract would literally just be something that states (an email/signed letter) that the client agrees to you doing the work at the prices given on the quotation (this is where the reference comes in) etc.