With the exception of monthly retainer fees charged when working in a maintenance capacity, I quote all-inclusive, value-based fees for consulting projects.
Why value-based fees?
I do not charge per day, per hour, per session or per anything else. My fee is for the value of my contribution, not how long it takes. This is much fairer than charging for time. Actually, I believe it’s more than just fair—it’s the only ethical approach. How can it be ethical for a client not to know what a job will cost before it starts?
Many consultants charge for time spent instead of for the value of the contribution (and not just consultants; trainers commonly do the same thing). This harms productivity and lessens value on both sides.
There is a temptation for the consultant to pad out the time spent on the project in order to bump up the total fee. But clients don’t want a drawn-out project; they want fast results.
When snags arise—as they almost inevitably will—the consultant may be embarrassed to do the extra work needed to sort out the problems because he thinks the client will resent being charged for the extra time. And the client may be reluctant to ask for the consultant’s assistance because he then has to justify the consultant’s time-based charge. For everything that crops up the client asks: Is it worth paying to get this issue sorted, or shall we just let it ride?
The last point is especially relevant with line managers and subordinates who should not feel restricted in their collaboration with the consultant. I ensure that anyone who is actively involved in the project can receive my attention without worrying about incurring extra expense.
To sum up: my consulting fees are based on my contribution to the results you achieve through improvements in performance and reductions of wastage, with strong return on investment for you and equitable compensation for me.
All of the above applies to work carried out within the terms of the project as originally agreed and specified in an accepted proposal. Any expansion of the scope of the project must be agreed by the principals and would be subject to additional fees.
Where a monthly retainer fee is agreed for “maintenance” consulting, the amount of work carried out by the consultant and the contact time with the client will naturally vary from month to month.
Standard payment terms:
For driver behaviour improvement projects: 50% of the agreed consulting fee is to be paid before commencement of the improvement project and the remaining 50% within 30 days of the commencement date. 10% discount applies if the full fee is paid in advance.
Retainer arrangements: Retainer fees are to be paid monthly in advance. Nobody is locked into long-term contracts; retainer agreements may be terminated at any time simply by withholding the next month’s fee.
I guarantee what can be guaranteed
I give all advice in good faith, aiming to achieve the best possible results by the most effective means. However, it is ultimately the client’s responsibility to follow that advice and to implement my recommendations, so results may vary between clients and, being out of my direct control, cannot be guaranteed.
What I can guarantee is the quality of Drivernetics’ work. If our work is not consistent with the quality expressed in the accountabilities section of the accepted proposal, I will refund your full fee.
Please note that my consulting is backed by professional indemnity insurance up to £5 million and public liability insurance up to £10 million.