Pricing
Fixed Price vs. T&M
By: Ray Myers, Jr., PMP There are many ways to price a contract, the most common being Firm Fixed Price and T&M. Selecting the right contract type for your project shouldn’t be a big deal; each one has its own advantages and disadvantages. The Project Manager should have a firm understanding and working knowledge of... »
Project Pricing – T&M
By Ray Myers, Jr., PMP T&M, short for Time and Materials, is a common pricing methodology that is used when the project scope is not clearly defined or when the scope frequently changes. T&M contracts are ideal for small projects or tasks because the client pays for only the actual hours worked and the materials... »
Project Pricing – Margin
By Ray Myers, Jr., PMP According to the businessdictionary.com, margin is defined to be: the difference between the cost price and the selling price of a product. In other words, margin is the profit earned on a business transaction. Margin is usually measured as a percentage of the selling price. Thus the project manager might say,... »
Project Pricing – Markup vs. Margin
By: Ray Myers, Jr., PMP Is there a difference? You bet, and understanding the difference between these confusing terms may impact the profit you make on your project. Let’s define the terms and do a quick calculation to see the difference between the two pricing concepts. Markup Markup is the difference between the cost of your project... »
