Why a lump sum contract approach is better then a cost plus when contracting a designer?
1) It has to do with incentives. When you hire someone cost plus there is an hourly rate. How many hours is it going to take? What is the workers incentive? They want as many friggen hours as possible if the workers on your project are slow otherwise you are now the gravy train. If they are trustworthy people and you know they won’t do this then you want to use this method. The reason is that even good intentioned people will have to add in a padding for lump sum to be sure any unforseen obstacles don’t screw them up. 2) Another point is that a designer will sometimes be the type of person that might be considered a perfectionist. So they will take it upon themselves to make darn sure you have the best darn whatever that has ever been designed. This is a burden the company has to handle if it is lump sum, while it will be your problem if you go with cost plus. For this reason you will be more involved with a cost plus to “manage” them, when the reason you hired them is because you don’
