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Barry's Fees and Expenses
PAGE INDEX:
THE
FACTORS AFFECTING BARRY'S FEES
There are several interacting factors that Barry considers in setting
his professional fees. (Sorry, it's not simple.)
- The intensity of the roles required by
the project: (see note #1)
- Trainer (most intense)
- Facilitator
- Consultant
- Writer/materials or program developer, etc.
(least intense)
- Number of persons to be served (see note
#1)
- The amount of preparation time needed
to do the work at a high level of quality (see notes #2 &
#4)
- Number of days of work and whether the
days are separate or consecutive (see note #3)
- Complexity of the work to be done, as
in whether: (see notes #1 & #4)
- needed materials already exist or must be
developed
- the challenges, problems, or numbers involved
in the work
- The work time lost to Barry because of time
needed for travel to your site (see note #5)
NOTES
- DETAILS ON THE FACTORS EFFECTING BARRY'S FEES
Note #1 - NUMBER OF PERSONS SERVED - The larger the group,
the more complex will be the training and activities, the more can
go wrong, the more energy required, and the more complex and stressful
the leadership role. Basically, I charge a lower rate for groups
of 25 persons or less, and a medium rate for groups larger than
25 but not more than 150, and a higher rate for groups larger than
150. Of course a few persons either way of those cut points are
not significant and do not matter.
Note #2 - PREPARATION TIME -
I do NOT specifically charge clients for preparation time unless that
preparation requires considerable time or requires creation of many
new materials. In these cases, payment for this time is always discussed
and agreed upon in advance. Also, I will gladly negotiate a discounted
"package price" for the project. If the total project is
to actually develop materials, I will do the work in my own office
(see "E" below) and I will charge a different, lower rate
for that time.
Note #3 - THE RELATIONSHIP BETWEEN
LENGTH OF CONTRACT & FEES - Barry is a full time private consultant
& trainer and as such, he has business and personal needs just
like his clients. The trickiest aspect of his business is the lack
of a steady, reliable income. That is why longer term contracts are
so desirable and one reason why Barry is willing to discount his fees
for longer term projects. Please consider the benefits of this for
your own cost savings when deciding how much work to include in a
contract with Barry.
Barry's work is not limited by organizational or a supervisor's
constraints because he is the boss. That means that he can work
with you filling many roles, and with a group of people in the same
program at many points over time in a sequence of development. His
work with you can be on a limited or a very in-depth and long term
basis. Contracts can be as short as one day, or can last several
months or even years. In fact, as a staff developer, his preference
is to do longer term, developmental projects because they are more
personally and professionally satisfying. Therefore, the longer
the term of the contract and the more work it provides, the greater
the discount on the project fees will be.
Note #4 - BARRY'S EXPERTISE
- In addition to working in areas of his known expertise, Barry also
tries to select related consulting & training opportunities which
allow him to learn or expand his experience and expertise. When that
is the case, he is very careful to candidly discuss his strengths
and responsibilities with clients and to do nothing that would negatively
impact the success of your project. Specifically, he will not accept
any assignment for which he has any concern about delivering a successful
result.
Further, when an assignment requires greater learning to do it
well, Barry knows that he will gain many future benefits
from that learning and that the cost of the time to do that learning
should not be born by the current client alone. That is why the
issue of Barry's learning and growth is important here. He is willing
to increase his discount for services in such a case.
Note #5 - TRAVEL TIME - Barry
does NOT specifically or automatically charge clients for his traveling
time. However, when Barry must travel, that day is effectively unproductive
for him as a worker. Consider the issue of productivity when Barry
must lose a day to travel to your site, work a day, and then lose
a day to travel home again. That is why multiple consecutive days
of work are so important to us all.
If travel must be done during work hours and travel requires Barry
to use time during which he could be working with other clients,
he must consider the time lost in pricing his services. The cost
of this time is very reasonable since it is necessary to the work
but we know it is of little direct value to the client.
TYPICAL
FEES FOR CONSULTATION, TRAININGS, AND PRESENTATIONS
Please note that each project is individually planned, all the
above factors are considered, and costs are individually calculated.
However, here are examples of Barry's typical fees.
- A - IF within 2 hours driving time of his
home:
- Consultations, presentations, and trainings
with groups up to about 25 people = $750-$800 per day.
- Presentations and trainings with groups larger
than 25 = $1000-$1300 per day
- Request mileage reimbursement at 30 cents
a mile
- B - IF travel to a site exceeds two hours
driving time from his home OR the site is within the continental
US and requires an airline flight:
- For consulting, $750-$900 per day, plus expenses.
- For consulting, trainings or presentations
with larger groups in these distant settings, the fee is $1000-1300
per day, plus expenses.
- C - For work outside of the continental US
which requires extensive travel, call Barry at 630-668-2605 to
discuss the requirements. The only added factor here is the
time required for travel.
- D - If the work involves meetings
which Barry should attend (ie. to learn new information) but for
which Barry does not provide leadership or facilitation, his usual
fee is $75 per hour unless it is a part of a day of work for which
a day's fee is charged.
- E - For projects Barry can work on
at his OWN office he typically charges $60 per hour for a
shorter project (1 day or less), and $50 per hour for projects
of more than a day.
- For multi-day or longer term projects, Barry
will submit a proposal for the whole project and all of the costs
involved including a "quantity DISCOUNT". We can negotiate
from that to a final contract that is agreeable to both parties.
TYPICAL
FEES FOR GRANT WRITING & OTHER SUCH PROJECTS
Please note that each project is individually planned, all the
above factors are considered, and costs are individually calculated.
However, here are examples of Barry's typical fees.
- If the work involves meetings which Barry
should attend (ie. to learn new information & be a part of
planning) but for which Barry does not provide leadership or facilitation,
his usual fee is $75 per hour unless it is a part of a day of
work for which a day's fee is charged.
- For GRANT WRITING and other such projects
Barry can work on at his OWN office he typically charges
$50 per hour for a shorter project (1 day or less), and $40 per
hour for projects of more than a day.
- For multi-day or longer term projects, Barry
will submit a proposal for the whole project and all of the costs
involved including a significant "quantity DISCOUNT".
We can negotiate from that to a final contract that is agreeable
to both parties.
EXPENSES
The client pays my travel and other necessary expenses,
which I promise to keep reasonable.
- Airline Flights:
- I prefer to fly a main air carrier but I
am glad to travel coach class.
- I always seek the lowest fares possible.
- Whenever possible, I inform clients of the
opportunity to combine their trip with that of a second client
so my expenses may be shared (usually 1/2 for each client)
- My hotel/motel needs are simple. (Cost
estimates are about $70 a day.)
- Super 8, Motel 6, Holiday Inn, etc. are just
fine.
- I do request arrival and a motel room the
night before an event unless it is a short drive from my home
- My expenses for meals will be very reasonable
too. (estimated at $20 a day without lunch)
- Clients usually provide my lunch, which is
usually on-site. A sandwich and Diet Pepsi are fine.
- I usually request $8 for breakfast and $12
for dinner, but often spend and seek reimbursement for less
- Mileage, tolls, parking, shuttle/taxis, etc.
- I will request reimbursement for:
- Mileage from my home to the Chicago airport
at $.30 a mile (varies with which airport, but is often about
$15-$20)
- Any highway tolls (estimated at $1 in Chicago).
- Long-term economy parking required at the
airport in Chicago (at $13 a day, but add one extra day since
my initial arrival at the airport is usually in the afternoon
and my return is usually later evening, an additional 24 hour
period.)
- Taxis, shuttles, or limos in your location
(if I do not rent a car)
- Car rental is usually necessary when I will
be in a location for several days. I use Avis and always get
a 4 door compact car. (estimated at $50-$70 a day, varies
greatly by market)
- Some of the on-site travel expenses can be eliminated
if the client will provide a staff person as a driver with a car.
It's your option but it's often only practical for a one day visit.
HANDLING
OF RECEIPTS AND PAYMENTS
Barry suggests two options for accounting for his project work.
He prefers the first option but the choice is yours.
- OPTION #1 - LUMP SUM PAYMENT - Barry's original
contract proposal includes estimated expenses. When it is time
to invoice the client, Barry keeps all receipts and invoices the
client for the total amount of the contract. He accounts for expenses
directly with the IRS through his own accountant and corporate
taxes.
- The benefits to the client -The client
pays a lump sum which includes professional fees and expenses.
The client does not have to handle details such as tolls,
parking, or other costs. Also, the client is assured of a
fixed cost for the project which can not increase during the
work, regardless of actual costs to the consultant. This is
the simplest method for the client.
- The benefits for Barry - What is simple
for the client is also simpler for Barry. He can be paid for
his work more promptly because he does not have to send you
receipts and a detailed accounting of his expenses. He can
wait until time when the pressures of work are less, and then
deal with the business/taxes side of his work. Also, he is
assured a fixed amount of income during the project. A known
future income is important to Barry.
- OPTION #2 - RECEIPTS ARE SENT TO THE CLIENT -
Barry's original contract proposal includes estimated expenses.
When it is time to invoice the client, Barry sends all receipts
in a detailed accounting of actual expenses to the client with
the invoice. The client accounts for actual expenses and deals
with taxes.
- The benefits to the client -The client
pays a total which includes professional fees and only the
actual expenses. Some business offices and or grants require
this approach.
- Drawbacks for the client - The client
must handle details such as tolls, parking, and other costs.
The client is not assured of a fixed cost for the project
. The actual cost of a project can increase during the work
when the actual costs to the consultant are increased beyond
original estimates. Although Barry will always work to control
project expenses, airline costs and some other expenses are
frequently changed.
- The benefits for Barry - Barry will
be reimbursed for his actual expenses, even if costs increase
during a project.
- Drawbacks for Barry - Barry hates
it when the business side of his work conflicts with doing
what he loves, (working with educators). Detailed accounting
to a client takes more time, often when time is at a premium.
When Barry must put off working on invoices (which must contain
expense accounting) so he keeps focused on consulting &
training, he is also putting off getting paid until later.
That is not so good.
PAYMENT
OF LONGER TERM CONTRACTS
When a contract extends over a longer period of time, such as more
than a month or two, Barry will ask that the contract specify periodic
(monthly?) payments of a fraction of the total contract. This ensures
that his expense costs (credit cards) are routinely paid down. Barry
and the client will discuss and agree on which approach to use.
- The fractional payment amounts can reflect the
actual fees and expenses for that shorter period of time, OR...
- The fractional payment amounts can just be an
even division of the total amount.
EXAMPLE #1 - A contract for 4 months of work totals
$7400. Using the 1st choice above, Barry invoices at the end of
each of the four months as follows to reflect actual work
done:
- Invoice for Month #1 = $2700
- Invoice for Month #2 = $2000
- Invoice for Month #3 = $ 700
- Invoice for Month #4 = $2000
- TOTAL INVOICED = $7400
EXAMPLE #2 - A contract for 4 months of work totals
$7400. Using the 2nd choice above, Barry invoices at the end of
each of the four months for $1850 (1/4th the total each time).
OTHER
EXPECTATIONS OF THE CLIENT - The client also provides:
- Any required AV equipment (such as overhead,
screen, VCR and monitor or projector)
- Easel and flip chart paper pad with 3-4 colored
markers & tape, pins, or other means for hanging paper suitable
for the training room
- Duplication of all handouts and other materials,
masters will be provided in advance
- Seating & room arrangement as specified by
Barry Sweeny
- (After project completion) A brief written statement
describing the client's reactions to Barry's work.
BEST
PRACTICE RESOURCES CONTRACT CANCELLATION POLICY
Contract cancellation is rare, but most often caused by:
- 1. Inadequate needs assessment
- 2. Lack of clarity in definition of goals
- 3. Inadequate understanding of the processes
involved in leading complex change initiatives.
IF needs assessment, planning, and collaborative
contract negotiation are properly done, all of these problems will
be avoided.
When a contract is thoughtfully negotiated and freely
entered into, it is a statement of the good faith intentions of
each party to do important work together. When Barry and the client
each sign a contract, BOTH parties expect the other to honor that
statement of intent. To do otherwise makes contracts meaningless.
Therefore, contracts should only be broken under the most unusual
and unavoidable circumstances, and NOT just because something has
changed. If something has changed the contract should be adjusted
to address the change.
- Barry will always do everything possible to fulfil
his part of a contract, on time, as expected.
- Barry will not ask to be released from a contract,
except in the possible case of an extreme emergency in his immediate
family. (Note - Since starting consulting in 1987, Barry has NEVER
asked to be released from or cancelled a contract .)
- Barry expects the client will honor the contract
too.
- However, there are possible situations in which
a client has no choice but to cancel a contract.
IF A CLIENT MUST CANCEL A CONTRACT:
- Barry will not charge the canceling client IF
Barry can arrange to work on that same date for a new client.
- However, depending on the amount of advanced
notice of the cancellation, Barry may have lost most opportunities
to arrange to work for another client on the date that was originally
reserved for you.
- In the case that a client has cancelled a contract
AND replacement work cannot be arranged, the following cancellation
charges will apply to the canceling client:
- 3 months written* advanced notice
of cancellation, cancellation charge of 20% of the
contract for the cancelled date, plus the cost of any non
refundable travel tickets already purchased**
- 2 months written advanced notice of
cancellation, cancellation charge of 25% of the contract
for the cancelled date, plus the cost of any nonrefundable
travel tickets already purchased**
- 1 month written advanced notice of
cancellation, cancellation charge of 30% of the contract
for the cancelled date, plus the cost of any nonrefundable
travel tickets already purchased**
- 2 weeks written advanced notice of
cancellation, cancellation charge of 40% of the contract
for the cancelled date, plus the cost of any nonrefundable
travel tickets already purchased**
- 7 days or less written advanced notice
of cancellation, cancellation charge of 50% of the
contract for the cancelled date, plus the cost of any nonrefundable
travel tickets already purchased**
* Note - "Written advanced notice" includes
email.
** Note - Assumes that " travel tickets already
purchased" cannot be used in any future work with the same
client. If tickets CAN be reused at a future date, the airline charge
for changing the date of the ticket (usually $75) is all that the
client will be asked to pay.
Note - Postponing a reserved date to another
new date is NOT considered a cancellation. In the case of postponement,
the client will be expected to pay any reasonable consultant costs,
such as the airline charge for changing the date of the ticket (usually
$100).
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