Day#231: How to work out a contract fee

Day#231: How to work out a contract fee

I recently came across a Contract position and realized that I actually had no idea about how to structure my requirements for a package when it came contract work. I chatted with a few people who have the experience in the contract industry and decided I would share that information today on my blog, so here goes.

  • You will need to know what your hourly rate is, this will make up some/most or all the points mentioned below dependant on the role.
  • Ask lots of questions understand what will be your responsibility and what will be expected of you
  • For example you can be almost certain you will have to provide your own laptop, however all ask about the type of Usability testing that the company is envisioning, you will need to include that in your budget.
  • Make sure you understand and know all the equipment you will need, the laptop as stated above falls under that category but maybe you will also need a specific phone for testing or recording equipment etc. Once you have agreed to the contract you will have to make it work within that budget so make sure you factor all that in.
  • Still on the category of equipment, you want to make sure you know all the software and tools you may need for the job, knowing the prices of all the software and monthly costs will also be expenses to consider.
  • As small as this point may seem to me, consider your data usage. Will you be at the company’s offices using their internet or will you be working remote if you are working remote will there be daily stand ups which you will need data for etc. Considering all these factors will help make sure you are covering all your expenses for the project.
  • Something I didn’t even know happened with contracts was that you don’t get paid time off, when you do need to take time off it will be unpaid so ensure that you understand the loss of those paid for sick days and annual days leave
  • With contracts in UX, you may have to go out to various locations for usability testing, this is something to find about with your employer.

The above are just basics and it is not to say that you should always factor in the expense of petrol because you may have remote users or you may not have to drive out a lot. However knowing what all the variables are will help you work out your contract asking price. I was literally in the dark on this, not so long ago but thanks to be thrown in a potential situation where I needed to work this out and having a wonderful network of helpful and knowledgeable Uxers I have learnt valuable information on understanding how to price a contract. Finally before I leave you remember that contracts are generally a short period of time, and dependant on the market you may if possible want to consider the start and end dates of the contract in relation to you finding a new position. For example a contract that ends in November is going to leave you in a bit of a stitch to find a new position for December where everyone goes on leave and is in holiday mode. Trust me I have looked for employment before in December and it is a process that is basically halted in December. Happy researching until next time, and hope this helped

Bye for now!

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