Set rates and scope that stick
Scope first, then price. Use milestones and change-order notes to keep projects predictable and fair.
Scoping patterns
Clear scope prevents disputes and keeps projects on track. Start with deliverables, not hours.
Common scoping approaches
- Fixed deliverable: "Design 5 landing pages, 2 revision rounds each"
- Time-boxed: "20 hours of development work per week for 8 weeks"
- Milestone-based: "Phase 1: Research & wireframes. Phase 2: Design. Phase 3: Handoff"
- Retainer: "Available 10 hours/week for ongoing support, billed monthly"
The more specific your scope, the easier it is to price fairly and manage expectations. Include what's out of scope to prevent scope creep.
Rate models
Different rate structures work for different types of work. Choose the model that aligns incentives and reduces friction.
| Model | Best for | Pros | Cons |
|---|---|---|---|
| Hourly | Ongoing, variable work | Flexible, easy to adjust | Requires time tracking |
| Fixed project | Defined deliverables | Predictable cost | Scope creep risk |
| Milestone | Phased projects | Ties payment to progress | Requires clear milestones |
| Retainer | Ongoing availability | Predictable for both sides | May not use full hours |
| Day rate | Short-term intensive work | Simple billing | Less granular than hourly |
You can mix models—for example, a fixed fee for initial work plus an hourly rate for revisions or ongoing support.
Change control
Projects evolve. Build a simple change-order process to handle scope changes without conflict.
Change order workflow
- Contractor proposes change: "Adding user authentication will require 15 additional hours at $100/hr = $1,500"
- You review and approve: Confirm budget and timeline impact
- Document in writing: Email or change order form with new scope, rate, and deadline
- Update milestones: Adjust payment schedule if needed
- Both parties sign off: Keep a record for audit trail
Clear change control protects both parties. Contractors get paid for extra work, and you maintain budget visibility.
Examples
Here are real-world examples of rate and scope combinations that work well.
Design project
Scope: Design 3 landing pages with 2 revision rounds each
Rate: $4,500 fixed fee
Milestones: 50% upfront, 50% on final delivery
Development retainer
Scope: Available 20 hours/week for feature development and bug fixes
Rate: $8,000/month (equivalent to $100/hr)
Terms: Billed monthly, 30-day notice to cancel
Content writing
Scope: 4 blog posts per month, 1,500 words each, SEO optimized
Rate: $500 per post
Payment: Net 15 after delivery and approval
Frequently asked questions
Should I negotiate rates or accept the contractor's proposal?
It depends on market rates and the contractor's experience. Research typical rates for the role and location. If the rate is fair and the contractor is qualified, accept it. If it's high, discuss scope adjustments or negotiate respectfully.
How do I handle scope creep without damaging the relationship?
Use a change order process. When new work comes up, acknowledge it's outside the original scope and propose a change order with the additional cost and timeline. Most contractors appreciate clear boundaries.
What if the contractor wants to change their rate mid-project?
Honor the original rate for the current project. Discuss new rates for future work. If the contractor insists on changing rates immediately, review your contract and consider whether the relationship is sustainable.
How detailed should my scope be?
Detailed enough to prevent misunderstandings, but not so rigid that it stifles collaboration. Include deliverables, revision rounds, timelines, and what's explicitly out of scope. Leave room for reasonable interpretation.
Can I use different rate models for the same contractor?
Yes. You might use a fixed fee for a specific project and an hourly rate for ongoing support. Just document each arrangement clearly in separate agreements or statements of work.