Compensation

Prepare and negotiate fees that allow for quality and profit

Whether effort-based or value-based criteria are used for establishing fees, always keep in mind that sufficient fees will allow for sufficient time to prepare quality work. Always negotiate the compensation along with a scope of services so that the owner knows exactly what is included in the paid fee. By being transparent with the client regarding the basis of the fee proposal, a basis for the amount of contingency can be established. This will help avoid arguments over extra service requests later.

When negotiating fees, have in mind a number below which the firm will not take the project. Be ready to walk away from a client with whom you have historically lost money, or from a project type that poses too much risk compared to the reward being offered.