CompuServe Thread

I used to work for a company that did consulting work, and we used to simply bill the client on a per diem rate. This could work for you if this is the only project you are working on at the time. As far as travel goes, we would bill the client for travel time as well, since you can't work on anything else while travelling you should bill the client you are travelling for. As to what rate to charge, I have seen "consultants" charging everything from $15/hour (friend of a friend situation) to $300$400/day for the high priced guys from Cooper Lybrand. You will have to set a rate based on what you think your services are worth and what you think the client will pay. Why not use your usual programmming rate * 7.5?

I used to work for a company that did consulting work, and we used to simply bill the client on a per diem rate. This could work for you if this is the only project you are working on at the time. As far as travel goes, we would bill the client for travel time as well, since you can't work on anything else while travelling you should bill the client you are travelling for. As to what rate to charge, I have seen "consultants" charging everything from $15/hour (friend of a friend situation) to $300$400/day for the high priced guys from Cooper Lybrand. You will have to set a rate based on what you think your services are worth and what you think the client will pay. Why not use your usual programmming rate * 7.5?

Brian, I work as an attorney for a multi-billion $ company that hires consultants of all shapes and sizes all the time. I write a lot of the consulting agreements with these people. Rates generally run from a >low< of about $300 per day to up around $1000 or $1500 per day. This includes some software consultants who do stuff for our microprocessor-based products. In addition, I was recently called in on an outside lawsuit and billed my time at a rate of $125 per hour (=$1000) per day). That rate is typical in Chicago for a lawyer in my field with my experience. If you are consulting to a board of directors they shouldn't be surprised to see fees in that range. Many lawyers I know bill for travel time on an 8 hour-per day basis. Even if they have to spend 16 hours traveling in one day, they bill only 8 hours. After all, the idea is that your client is buying time you could presumably be using to make money somewhere else (but theory has it that you won't likely work more than 8 hours in a day). — Mike —

Brian, I work as an attorney for a multi-billion $ company that hires consultants of all shapes and sizes all the time. I write a lot of the consulting agreements with these people. Rates generally run from a >low< of about $300 per day to up around $1000 or $1500 per day. This includes some software consultants who do stuff for our microprocessor-based products. In addition, I was recently called in on an outside lawsuit and billed my time at a rate of $125 per hour (=$1000) per day). That rate is typical in Chicago for a lawyer in my field with my experience. If you are consulting to a board of directors they shouldn't be surprised to see fees in that range. Many lawyers I know bill for travel time on an 8 hour-per day basis. Even if they have to spend 16 hours traveling in one day, they bill only 8 hours. After all, the idea is that your client is buying time you could presumably be using to make money somewhere else (but theory has it that you won't likely work more than 8 hours in a day). — Mike —

I haven't read the other replies yet (been out of town) but have a suggestion for you. Most consultants in other forms of business charge by the hour based on a minimum amount of time (normally 10-20 hrs). They get the equivalent of "expert" fees or in the range of $100 to $200 per hour. There is one other way, give them an "outrageous" fee schedule such as $300 per hour with a 10 hour minimum and negociate downward from there. If they accept the $300 @ 10 minimum—-you were too low to start, wait 6 months an push for more. Well, there is really a 3rd way, charge them a fixed fee based on what you feel is a fair estimate of your "worth" to the company and the amount of time you expect spend on each project. Normally a retainter is in the neighborhood of 10% of expected fee but not always. All of this is based on fees for things other than software (such as legal fees, expert opinions based on analysis of a problem, etc.) but it should carry over.

I haven't read the other replies yet (been out of town) but have a suggestion for you. Most consultants in other forms of business charge by the hour based on a minimum amount of time (normally 10-20 hrs). They get the equivalent of "expert" fees or in the range of $100 to $200 per hour. There is one other way, give them an "outrageous" fee schedule such as $300 per hour with a 10 hour minimum and negociate downward from there. If they accept the $300 @ 10 minimum—-you were too low to start, wait 6 months an push for more. Well, there is really a 3rd way, charge them a fixed fee based on what you feel is a fair estimate of your "worth" to the company and the amount of time you expect spend on each project. Normally a retainter is in the neighborhood of 10% of expected fee but not always. All of this is based on fees for things other than software (such as legal fees, expert opinions based on analysis of a problem, etc.) but it should carry over.

Bri, in my office (in NYC) consultants bill at their usual rate (which varies from approximately $300 to $700 a day) no matter what job they are there to do. Whether it's programming, design, or an advisory position. I don't think you should let the fact that you are programming or not programming be a determining factor. Marlene

Bri, in my office (in NYC) consultants bill at their usual rate (which varies from approximately $300 to $700 a day) no matter what job they are there to do. Whether it's programming, design, or an advisory position. I don't think you should let the fact that you are programming or not programming be a determining factor. Marlene

Well I tell you how I did it for a while and you can decide for yourself. The current rates range from around 18 to 30 dollars per hour. The wat I counted time was very simple. Using a calendar I would mark down start and stop times when I was working for a particular client. At the end of the week I would total up the time and at the end of the month mail a bill. My biggest job was with a Japanesse outfit which required I travel to a city south of Tokyo. As far as traveling expenses THEY PAY ALL EXPENSES INCLUDING LIVING EXPENSES (hotel,meals,travel cost, rental cars etc.) The way I charged for my time was 8 hours per work day ie days I was required to perform services. This of course should be upfront in your initial contact. There is a standard contract that a lot of companies and consultants use, there are several points to remember. (1)ALWAYS get a signed contract that is satisfactory to you. (2Make sure the rate and method of billing and payment is detailed. (3)Also be aware most companies will want your work to be confidential and anything you may learn about the company ie corporate secrets and other items be kept to yourself and not used for another client. (4) Also make sure that who pays what expenses is outlined in the contract. (5) DONT forget about self employment qurterly filings with the Infernal Revenue Service. A lot of people get in trouble by forgetting this. That retainer is exactly what it means a payment to retain your services just as you would pay a retainer to a lawyer. Good luck sam

Well I tell you how I did it for a while and you can decide for yourself. The current rates range from around 18 to 30 dollars per hour. The wat I counted time was very simple. Using a calendar I would mark down start and stop times when I was working for a particular client. At the end of the week I would total up the time and at the end of the month mail a bill. My biggest job was with a Japanesse outfit which required I travel to a city south of Tokyo. As far as traveling expenses THEY PAY ALL EXPENSES INCLUDING LIVING EXPENSES (hotel,meals,travel cost, rental cars etc.) The way I charged for my time was 8 hours per work day ie days I was required to perform services. This of course should be upfront in your initial contact. There is a standard contract that a lot of companies and consultants use, there are several points to remember. (1)ALWAYS get a signed contract that is satisfactory to you. (2Make sure the rate and method of billing and payment is detailed. (3)Also be aware most companies will want your work to be confidential and anything you may learn about the company ie corporate secrets and other items be kept to yourself and not used for another client. (4) Also make sure that who pays what expenses is outlined in the contract. (5) DONT forget about self employment qurterly filings with the Infernal Revenue Service. A lot of people get in trouble by forgetting this. That retainer is exactly what it means a payment to retain your services just as you would pay a retainer to a lawyer. Good luck sam