Subcontracting - Ruby on Rails meets the business world

Message from discussion Subcontracting

Anthony Eden

More options Jun 13 2007, 9:34 am

From: "Anthony Eden" <anthonye...@gmail.com>

Date: Wed, 13 Jun 2007 09:34:01 -0400

Local: Wed, Jun 13 2007 9:34 am

Subject: Re: [rails-business] Re: Subcontracting

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Overhead is much more than direct project-related overhead. Overhead covers
the cost that went into securing the original contract, the cost of
maintaining the contract (i.e. managing the client so the contract stays in
place), the cost of all of the non-direct charge employees (upper level
management and their staff), office operating costs, etc. Granted those
costs may seem high to you but they are a necessary evil of doing business
as your company grows. And above all of that the consulting company is still
in business to make a profit I'm sure. :-)

V/r
Anthony

On 6/13/07, Michael Breen <hard...@gmail.com> wrote:

> I have no intention of trying to get the rate that they are charging, I
> just want what is fair for both of us. There really is no overhead for the
> consulting firm (that I can see). They are handing over this part of the
> project to me. I will be managing the project, coding, etc. The only
> overhead for them is taking part in the weekly review conference call to
> make sure we are on track.

> On 6/13/07, Robert Fischer <robert.fisc...@smokejumperit.com> wrote:

> > Unless they are desperate to fill the spot on the project, you're not
> > going to get the rate they are charging their client -- after all, they
> > need to pay for all the overhead they're inserting between you and the
> > client.

> > My recommendation is to charge just a bit more than your normal rate and
> > take the gig.

> > Of course, there's no real harm in shooting for the stars unless you
> > *really* need the gig: most contracting firms I know will politely, if
> > somewhat incredulously, engage in negotiations if you drop them a crazy
> > high rate.

> > Robert Fischer
> > IT Firefighter
> > Smokejumper Consulting

> > Michael Breen wrote:
> > > I have been approached by a big consulting company to work on a
> > > project for one of their clients. It's a cool project and I would
> > > really like to be involved. I would never be able to land this type of
> > > client/project on my own.

> > > I don't know this for a fact but I have a good idea this consulting
> > > company charges an hourly rate 2-3 times my normal rate to their
> > > client (a Fortune 500 company). The consulting company has asked me
> > > for my hourly rate and I'm not sot sure how to respond.

> > > Should I be grateful for the opportunity charge my normal rate and be
> > > done with it?

> > > Should I ask the consulting company what they will be billing my
> > > services out at? Do I even have a right to ask?

> > > Does anyone have any experience as a subcontractor?

> > > Thanks for the help.
> > > Mike

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