WIFCON(demo)
Sign up

Subcontract Type

Started by nlevit · Oct 30, 2009 · 2 replies

  1. n

    nlevit

    Oct 30, 2009 · 16y ago

    Original post

    I have to issue a new contract to an advertising firm. they design and place adds for us in mulitple types of media: magazines, sides of buses, etc.

    I know that the part of the subcontract where they are designing the adds will be T&M for their time and materials.

    The also do the research and place the adds and then charge the cost of the advertisement back to our company plus a fee based on the cost of the add. I know that cost plus % of cost is illegal, but what type of subcontract will the second part of the work be considered? thanks

  2. b

    bremen

    Oct 30, 2009 · 16y ago

    The also do the research and place the adds and then charge the cost of the advertisement back to our company plus a fee based on the cost of the add.

    We stopped letting the contractor charge a fee and instead they charge their hourly rate based on the complexity (dollar value and medium) of the placement.

    I've also seen a companies create a media buy plan with a fixed price for purchasing all of the advertising.

  3. n

    nlevit

    Nov 2, 2009 · 16y ago

    We stopped letting the contractor charge a fee and instead they charge their hourly rate based on the complexity (dollar value and medium) of the placement.

    I've also seen a companies create a media buy plan with a fixed price for purchasing all of the advertising.

    thanks. i will negotiate one of those ways of billing.

Sign in or sign up to post a reply.