What should be the procedure for concluding an agreement with a web studio client?

Question

Fintech

Hello!
First of all, the question of how and at what stage to determine the cost of the project is of interest.
I work with a team of freelancers, respectively, each has its own approximate (or not so) price tag - someone focuses on the cost of an hour of work, someone evaluates the work depending on the type of site, number of pages, etc.
Previously, after talking with a client, I made a commercial offer already for a specific project, in which I offered 2-3 price tag options with a description of the set of options for each, so that the customer could choose what fits into his budget. After that, he wrote a detailed TOR and coordinated it with the client, then the contract followed.
But now more and more often there is a need to get an estimate of the cost of work from freelancers, because. piece work. And if suddenly they have to spend time on some alterations and improvements, at some point they require an additional payment. This is how I think myself, doing something as a freelance performer. No matter how detailed the TOR is, something still arises in excess of the agreed hours - especially at the design approval stage. It's not very tempting to pay for these extra hours out of your own pocket, "throw" on the cost of the project is also a slippery issue, especially at the stage of the studio's formation (I don't want to scare the client away).
Any freelancer will require technical specifications to estimate the cost of work. Hence the question - how to draw up a full-fledged TOR if the budget has not yet been agreed with the customer and there are no guarantees at all that the price tag will suit him? Again, I used to do all this work even before the conclusion of the contract, risking wasting time - after all, the client may refuse not even because of the price, but simply "change his mind." Although, in fact, part of the work on the project has already been done.
Based on your experience, what course of action would you suggest?
Is it reasonable to name a specific price tag without compiling and agreeing on the TOR?
How to make a commercial offer if the cost of the project is formed only after the approval of the TOR?
Thanks in advance.

Answer 1

This is called a fork
. That is, the task is given with the worst and best solution
. For example, I come to the programmer how much you will do, he says, well, everything is OK, then 6 hours, if there are minor problems, then 8 hours, if it’s completely ass, then 10.
In terms of design, it is usually accepted stipulate that there will be three options for such a price, if you need more then each next one will cost so much.
It's time to become courageous and tell the client that the TK costs money, if he is focused on working with you, then in any case he will have to pay for the TK.
The cost can be called approximate from experience.

Answer 2

That's why normal web studios try to hire people permanently in the office, or at least remotely with a fixed salary. For every time, to calculate the cost of each freelancer - well, you can turn gray.

Answer 3

Switch to framework contracts, name the price in the range.
But in general, it is better that you (your organization) be some kind of guarantor, and have development reserves, so this business makes more sense. Outsourcing is already very difficult to get a good product, but working with intermediaries who work exclusively with freelancers is very dangerous for product owners.
I recommend taking your freelancers on a permanent remote basis, then you will have stable developers, more predictable quality/speed.

Answer 4

Thanks for the opinions! While writing the question, I came across a topic about paid technical specifications , and there I also found useful considerations.
As for remote work on a permanent basis, I agree, and this is in the plans. Thanks again.