Reducing Consulting Fees? - TechRepublic
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March 6, 2008 at 08:55 AM
adamblevins

Reducing Consulting Fees?

by adamblevins . Updated 18 years, 4 months ago

I recently started my own small business (still have, but hoping to break out of, the day job).

Business is trickling in (IT Support), but not the business I would prefer (Project Management).

Recently I was given a Project Management lead. The project involves designing a complex e-commerce website and some related data migration. To cut costs development will be outsourced to a foreign company.

I gave my initial proposal and was told my ideas had merit and offered value, but were “out of the budget”, and that “if I devised a plan more suited to small business, to let her know”.

I built the proposal based on past experience (8 years of similar corporate work). Some items I felt would be the same would be communication time, documenting/resolving development issues, task monitoring, etc..

Also, the Lead Developer came in at a price $1000.00 higher than me, and was accepted.

I am wondering:

1. What are your opinions on reducing fees to land a contract?

2. My gut tells me this could be a fiasco due to budget restrictions and potential communication/accountability issues with a foreign company.

3. The Sponsor’s apparent feelings toward PM make me wonder how processes will be allowed to function, and if I will be hamstrung…

Have you been down this road? What are your thoughts?

AB

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