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Sharing a project-What to charge?


guppy
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I got retrenched 9 months ago thanks to the economic crysis. Since then I have been surviving by doing freelance work. I recently got asked by my old company if I would like to help them out when they get big projects in as we work well together.

They would like to know what I would charge and how we would share the work.

Do we split the project percentage wise, if so what percentage?

What percentage should they get extra for admin work and bringing in the job? I am thinking something in the lines of 40% me / 60%company of the total price the company charges its client.

Do I insist on a hourly or daily rate or do I charge them for work completed?

I said I will get back to them about it.

I will insist on setting up a contract.

Obviously this agreement will work vise versa if I get a big project and use their help.

Any advice would be appreciated.

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I think you should work it out on a project by project basis. If it is a large project and you are working together, charge an hourly fee.

If its a complete job, quote by the job like you would to any other client. Keep good communication, as long as its mutually beneficial it should work fine.

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I am thinking something in the lines of 40% me / 60%company of the total price the company charges its client.

 

If you go this route, it implies that you are doing half the work. Your are giving 20% for admin, and bringing in the project. And the you are splitting the workload evenly 50-50?

 

Have you reviewed the hours they allowed for various aspects of the project when it was contracted? ..and the rate in which they are billing the client? Do you have even say in the quality of work, and when it is done?

 

If the answer is no to any of these, then I would do as others have suggested, and bill a direct hourly rate. Otherwise you are probably going to spend to much time, not make the profit you need.

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Looks like they wont go the hourly rate option.

We were only 2 people working in the 3D department, the boss and me.

If we go with the % option it seems they would like to keep 10% for bringing in the job and split the rest 50/50. Between the workload and admin we will be working the same hours and obviously because I am contracted I will go on with the workload while there is admin to be done by the boss.

 

I dont think that it will be a case of me ending up doing all the work while the boss does "admin". The boss has been doing 3D work longer then what I have and does work at a faster rate then me(leads by example). So I think 50/50 seems fair.

We usually only push out the same quality of work(some of the best South Africa has to offer).

 

I agree about working out a price per project,it just sounds more simpified.

 

Thanks for all the advice, will post about the outcome.

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Oh I almost forgot. They would also like me to bring in my pc from home(pretty big 1) to help with the rendering as the project will include some fly throughs. Do you think this changes anything?

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Did you have a computer assigned to you when you worked for them or did you have to bring your own in?

 

It sounds like the company is pinching its pennies...

 

If they are denying you access to your own equipment, how can you do things when you're "off their clock"? You should be able to easily justify some sort of rental or usage fee.

 

But what if you get a virus from their network? Or you give them one?

Would you have files on your computer that would be considered unWorkplace Friendly? I know I do!

 

What if it gets damaged when you are transporting it to or from work?

What if someone there 'mucks' with it while you're not around?

Who pays for it? Do you need to get extra insurance? Who will pay for it?

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Oh I almost forgot. They would also like me to bring in my pc from home(pretty big 1) to help with the rendering as the project will include some fly throughs. Do you think this changes anything?

 

Since you are splitting the fee equally after admin, I would say no. If the contract was billed properly, then the fee proposed should have had enough built in to cover render time. Regardless if that render time needs to be sent to a 3rd party render farm, or done locally.

 

If you do suggest a fee, then what is to stop them from saying that they have more machines, it is there network, and they are paying the electricity. So now they need a larger portion of the fee than they are already getting

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Some good pionts were raised. Thanks guys.

I will insist on keeping and rendering from my pc at home.

So problem solved. Remember this should work vise versa.

The only difference is that if I work for them on a project I will have to work at their office during daytime. Now time to setup a contract. Sorry for making it sound so compliated as it really isnt.:D

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Hi Billy,

 

This might a conflict of interest as i know your boss well and if i recollect we've met as while couple of years back. I am sorry to hear about you getting retrenched. In saying that my advice to you would be is to understand that there is a difference between working for someone and working for yourself and this is a fundamental change in thinking. Now you work for yourself and it is up to you decide what your time is worth. I was never a believer in splitting up a fee of a project. Firstly now that you freelancer you might not even get an access to that kind of information. What you need to do is to determine what is your time worth and be done with it. Everything else should be your ex-bosses/clients problem. Anyway, that is my two cents worth... Oh and i like that " best quality that SA has to offer"....:)

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  • 2 weeks later...

Hi Billy,

 

I'm sure we've met before at np - anyway, I agree with Arnold. One of the joys of being an outsourced entity is that they need to get their ducks on a row before they brief you - just be careful when going 'in-house', esp on big projects, it can become an endless slue of changes.

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