The 7 steps of fixed cost proposals

So, you have been asked to make an offer for an interesting but urgent project, and want to give a fixed-scope, fixed-cost project a shot?

Let’s do that. For “table stakes“, clear your schedule for at least 90 minutes to concentrate. Or, do it exclusively at night, as I do:)

1. Asses client wants: Ask questions until you understand both the current state and desired future state. How is success measured?
2. Build project needs: What scope of work is needed for the goal to happen? Does this roughly fit their time&money budget?
3. Communicate value clearly: What does the client really get from this project? How is value measured, and by whom?
4. Set boundaries to prevent creep: Outline possible inclusions and exclusions. Think through all of the creep types that could apply.
5. Consider alternative paths: build trust by thinking of at least two different ways you could achieve the project goal.
6. Build the options: use the alternatives to build at least two pricing options for the client.
7. As the last step, you should actively collaborate with the client to find the optimal option. Some of the options could need an explanation, and it pays to be magnanimous in that regard. After they choose, you need to take care of the paperwork and you are done. Remember, in the follow-up email, make sure to mention even the options they didn’t choose. People’s memories can be selective when cornered.