| Lesson 12 - Bids and Contracts
course taught online 11/5
In addition to the information
on this page you should review the Web
Professionals Feedback page
I created after surveying them about bidding practices.
How to Bid a Job
I will review bidding techniques for the first hour.
Finally we can discuss $$$. Many of us gain a sense of "personal satisfaction"
and "creativity" by designing Web sites, but you have to pay
the bills. Because this is such a new industry there are no
firm standards for what to charge. This should change as the
industry matures and the client becomes more educated regarding
the Web. However for the client and for the web designer the
question remains - what is the ROI (return on investment) for
my web site? Very few companies can afford to have a web site
which is beautiful but ineffective in either generating revenue,
increasing productivity, or minimizing costs.
I will review 3 techniques which you may wish to choose from when
bidding a job.
- Time and Materials (designers love it, clients hate it).
You have determined that your hourly rate is $40.00 per hour and the client just writes
you a check for the # of hours you work each month, plus any materials you must purchase.
Clients may feel uncomfortable with this arrangement unless there is a cap placed on
the budget.
- Bid the
project (clients love it, designers hate it)
You take a look at what the client wants, determine
that it will take 100 hours, pad another 20%, and multiply 120hrs. X $40.00 for a bid
of $4,800.00. A payment schedule should be implemented. For example 4 installments of $1,200 each
with the first payment coming in before work begins is a workable option. The
major concern is that you may
dramatically underestimated the time needed to complete the job. Another difficulty arises when
the clients keeps changing their
minds, if significant changes are being made - negotiate a change order fee.
- Develop pre-packaged web sites which clients
can choose from. This works best for the simple web site or the extremely cautious client.
The customer can see what they are getting up front and budget accordingly. A problem
arises if the client wants to expand or change the project. Once again any
changes need to billed at the hourly rate.
It is best to advise the client of this policy during the
initial meeting.
In all of the methods mentioned above you will need to determine what your hourly rate is.
This can be done by following these steps.
- Determine how much money you would like to earn per year.
i.e...$50,000
- Determine your yearly overhead expenses
| Software |
$2,000 |
| Hardware |
$1,500 set aside for a new computer every 3 years |
| Advertising |
$1,000 |
| Travel |
$500 |
| TOTAL |
$5,000 |
I encourage you to read the articles I have included on
bidding a job. Later on in the semester you will need to
send the project manager a description of how many hours
you have worked on the project and a projection for how
many more hours you will need to complete the project. Also
include the cost you feel your time is worth. This will
be your "bid estimate".
Here are some links which may prove helpful in compiling
the bid
Bidding Links
Website Costs and Bidding Techniques
What
should you pay for a Web site?
Website
Price and Specification Chart - by Wison Web
A website which calculates what
your site will cost.
Breaking
Out - escaping the 9-5 routine
.Web
Builder Bonanza also read the 3 articles at the bottom
of this article.
Has the Net Stopped Growing
The Layoff Payoff
Not Your Fatherís Radio
How to Charge
Making
it Big in a Small City -
Living
with Irregularity - how to survive as an independent contractor
who has an irregular income.
Risk
& Reward: Life at a startup by Sacha Cohen
Propose
to me - what is an RFB
On
the Edge - the clients from #&%@!
Handoff
- you can do it all yourself, or you can outsource advice
about making the transition from 9-5 to freelance
Work
Junkies
Employee-Independant
Contractor Issues from the IRS
Employee
or Independant Contractor from Ohio State University
Elance the Global Services
Marketplace
Examples of Former Student Bids
NBCC
Alliance
for Community Media
North bay Library Consortium
KITH
Additional
examples
of former students bids Contract Links and Examples
Contract Issues
HTML
Writer's Guild Sample Contract
Advice on contracts
Web
site
Design and Maintenance Agreement - by Wilson Internet
Services
Web Design/Development
Contracts
Contract from
Glass Bottom Design
Web Developer's
Contract Swipe File - Updated 07/08/00
How
to Write Effective Requests For Proposals
Basics
of Contract Law
Letter
of Agreement - Vermont Web Marketing
FAQ regarding contracts provided by HTML Writer's Guild
Starting Your Own Business
This is not a required part of the curriculum, however many
students enrolled in the course request information regarding
setting up their own business or hiring themselves out as
freelance contractors. Refer to the links listed below for
information on this topic. Also if you would like to use
the class mailing list to discuss this issue - feel free.
Finally the Redwood Empire Small Business Development Center
is available to help you in creating a business plan.
Redwood Empire Small Business Development Center
- Lorraine DuVernay, Director
- lduvernay@santarosa.edu
- Ann Bush, Interim Administrative Assistant
- abush@santarosa.edu
- 606 Healdsburg Avenue, Santa Rosa, CA 95401
- (707) 524-1770 (main number)
- (707) 524-1772
Content for these teaching materials were developed by Linda Hemenway.
If you have questions or comments on the material I can be contacted through
lhemenway@santarosa.edu
(707) 527-4855
Web site design by Jessica Hirsch - jessicahirsch@email.msn.com
Funding for these notes provided by Project FIVE and Project
PICTS supervised by Doug Garrison - Dean of the Petaluma Center.
This course is a core requirement for several Web Development Certificates.
Learn more at the Web Certification
site.
The CIS Department offers courses in the following areas: computer basics,
applications, graphics, web development, productivity, networking and programming.
Visit the CIS Web site.
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