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The only time I did "in-house" programming was when I worked for a University and programming had no cost or value associated with it (from a $$ perspective) so I can't say there.

There are a lot of variables so there aren't simple answers but...

- For the vast majority of projects, we provide a scope of work and attach a fixed price to that scope of work. Changes from that scope have costs associated with them that depending on the change (and some cases, client and urgency) that are either further fixed scope/price or time and expenses.

(Note: For the O/P's case generally we won't pick up someone else's code and in those rare cases we do it's T&M As-Is/Where-Is with no warranty whatsoever -- there's just too much liability in taking someone else's "black box")

- Quantity of interface is a really bad way, IMHO, to price because it doesn't really give you any insight on what programming is actually involved (12 touchpanels just turning a single display on or off? Much different than one touchpanel routing to 12 displays with video conferencing). For me, I have to develop the scope first then build a price based on my expectations (from past experience) on how long that will take.

- We warrant our code, but I can't say that that's common or not. As with any warranty there are exclusions (if someone else changes the code... being the biggest one)

- For most projects payment is down payment -> progress payment at onsite vist -> Final (smallest) payment after any open issues are closed out.

- Since we, for the most part, don't contract with end users this isn't a problem generally but no source code gets released until the contract is fully paid, and legal process can be leveraged if necessary. Warranty validity is also -- in extreme cases -- affected by prolonged nonpayment.

- We expect the installation to be complete before we arrive onsite and require an installer to be available (not "sitting idle" but somewhere in the building, at a minimum -- frequently that means tidying, working on non-Crestron rooms, whatever). I travel with test gear and have a good relationship with the installers I work with regularly. If I find an issue, I bring it to the installer's attention... they fix it... move on.

In extreme cases it becomes T&M billable (equipment still in boxes...design that failed to include proper power...) but you have to allow a certain amount of time for "Bad RJ-45" / "Swap pins 2 and 3" type problems.

The key is not to spend too much time: Once I determine the problem I move on... I don't just sit and wait for the install to be fixed unless that's literally the only option. There have been a few "let me get out of your way and go back to the hotel for a little while..." projects -- but ultimately the key isn't to get bent out of shape for accidental issues.

--
Lincoln King-Cliby, CTS
Sr. Systems Architect | Crestron Certified Master Programmer (Silver)
ControlWorks Consulting, LLC
Crestron Authorized Independent Programmer

-----Original Message-----
From: Crestron@... [mailto:Crestron@...] On Behalf Of quest_i_on
Sent: Friday, March 23, 2012 3:50 PM
To: Crestron@...
Subject: [Crestron] Advice on best pricing and contract practices

Mr fal.eweidah's email started and interesting question intentionally, and Steve's reply made me think that there's probably a lot more good advice from all you experienced programmers.

I, basically wanted to ask for your wise advice based on your extensive experience with:

- What is the most typical way of pricing programming: Per hour or Flat fee?
- Do CAIPs price differently than in-house programmers?
- What is the most common method for pricing? Per quantity of interfaces? Per types of interfaces? Per quantity of audio or video rooms?
- What are the most used terms of contract? Is warranty often offered?
- What are the billing terms? Is it normal to ask for a % before starting and a smaller and last payments after completion?
- How do you deal with a customer that doesn't want to make final payment on the programming fee?
- How do you isolate yourself from problems will installation mistakes?

Thanks!

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