Thanks for your reply. I hear what you're saying about hourly, and completely agree with your points -- if it is hourly without structure.
The difference is I treat each milestone/iteration as a small project, requiring assesment, scoping and client buy-off (A change order to the contract, along with an estimate). If they want time limits before continuing past x number hours, I'm fine with that too.
I see the advantages are:
* Lower risk to me because the price is not fixed
* Lower customer risk because they see progress and can adjust as the project unfolds.
* Lower cost to them -- they don't pay extra to cover my risk.
* The client has more control since they can make course corrections along the way.
* Regular client touch-points are built in - they get more visibility, I can adjust expectations
* Scope changes just mean more billable hours
The feedback I've gotten is they like the flexibility, and are often more willing to say yes because of reduced risk.
The difference is I treat each milestone/iteration as a small project, requiring assesment, scoping and client buy-off (A change order to the contract, along with an estimate). If they want time limits before continuing past x number hours, I'm fine with that too.
I see the advantages are:
* Lower risk to me because the price is not fixed
* Lower customer risk because they see progress and can adjust as the project unfolds.
* Lower cost to them -- they don't pay extra to cover my risk.
* The client has more control since they can make course corrections along the way.
* Regular client touch-points are built in - they get more visibility, I can adjust expectations
* Scope changes just mean more billable hours
The feedback I've gotten is they like the flexibility, and are often more willing to say yes because of reduced risk.