I have a couple of medium-sized FMP projects coming up, for which I need to be able to quote a price (or at least some kind of pricing structure). I would like a bit of advice on how to approach this, because projects are often open-ended in that there are always improvements that can be made, and also the time I expect to spend isn't quantifiable (not an FMPRO expert yet!). Quoting a fixed price could either shock the client (if I price too high in ensuring it is profitable) or ruin me (where I spend heaps more time that planned for in my [low] pricing). Do you work on a time-on-project basis? Or how do you deal with this issue?

Ah, the never-ending mystery of how to price FM projects (or any software dev project).

I suppose the key is to get a clear understanding of the requirements and then estimate the best you can. Write a spec doc that clearly states that the ESTIMATED price only includes what's in the spec! (change order process covers additions).

Sometimes I create a data model, list the layouts I know will be needed off the top of my head, and estimate from there (an hour a layout, perhaps). It's a dark art.

I've heard some devs just give an hourly rate and that's it. They work onsite, and there's no stated project cost.

It's difficult because most people don't know what they need until they see that first demo version. Maybe you could estimate dev up to the first demo, then reestimate after its evaluation. I agree with most that the more time (billable) spent upfront on requirements analysis will result in a more accurate picture of the projects scope and therefore its total cost.

Thanks very much for the help on that. At least now I have a useful approach to it all!

All the best

Guy