By Jerry Grohovsky, Copyright 2018. JPG & Associates, Inc.
You may want to consider doing projects on a project- by-project quotation basis if:
- Projects are very intermittent.
- With projects done on a quotation basis, more paperwork is required—since each project requires a separate quotation.
- Either volume of individual documents is low, or frequency of document changes is low.
- Project development is such that there are frequent starts and stops in activity.
- Your internal budgeting structure requires it.
- The financial structure in your organization is such that it is easier to manage and track costs for each project.
You may want to consider doing projects on an hourly (or time-clock) basis if:
Project activity is steady through-out a given fiscal or calendar year.
- There is often frequent shuffling back-and-forth between several different projects in a given day, week, or month.
- With projects done on an hourly basis (by the clock), paperwork is minimal.
- Either volume of individual documents is high, or frequency of document changes is high.
- Project development is such that there are infrequent starts and stops in activity.
Your internal budgeting structure is open to blanket POs for temporary resource contracts based on X-amount of hours or months.