I have found that some clients, especially those unfamiliar with the industry balk at this type of fee structure. I have found that for them a fixed fee works best.
I have some advantages in this type since as a small company I can better control my expenses. I had one client who was hesitant to sign on a hourly basis, they were concerned that the hours would become excessive. I suggested a fixed fee arrangement (based on the usual hourly basis and a generous estimate of the hours per month for all employees dedicated to the project). This was acceptable and work proceeded.
The upside was no meetings to explain why x hours were required on each task. This was beneficial since the client was 2,500 kms from the job site.
Does anyone have experience with different fee structures?
Rick Kitson MBA P.Eng
Construction Project Management
From conception to completion