How much to charge a mate for IT work?

[Deleted User]

I'm an IT contractor. So I work on client sites mainly doing short term stuff.

Got a mate who runs his own network company. He does OK out of it. Had a few support contracts which have got less and less but it pays his bills it seems. He does this from home.

Sometimes, he asks me to help if stuff in my skillset comes along. In the past, hes paid me a monthly fee sort of like a retainer. Also, in the past if hes had work hes charged to his customer hes paid me VERY well indeed.

More recently, hes just got a yearly support contract with one customer. Anything he pays me is out of his business i.e. he cant charge extra to his customer.

In the past, I've looked at stuff in the evenings and hes dropped me a few quid or bought me beer.

Recently, I've done some work for him. In the evenings mainly. But I was in hospital and unable to go to normal client for a few days so he asked me to look at something urgently (I was in hospital when he asked!).

To be honest, I've probably spent 15+ hours now and hes asked me to invoice him. No idea how much I should charge. Probably a bit much to charge my normal day rate.... Hes a really good fella and I know it comes out of his pocket directly ultimately.

BUT I want to get paid just not overdo it. Thoughts?

HappyMJ

[quote=[Deleted User];discussion/5381003]I'm an IT contractor. So I work on client sites mainly doing short term stuff.

Got a mate who runs his own network company. He does OK out of it. Had a few support contracts which have got less and less but it pays his bills it seems. He does this from home.

Sometimes, he asks me to help if stuff in my skillset comes along. In the past, hes paid me a monthly fee sort of like a retainer. Also, in the past if hes had work hes charged to his customer hes paid me VERY well indeed.

More recently, hes just got a yearly support contract with one customer. Anything he pays me is out of his business i.e. he cant charge extra to his customer.

In the past, I've looked at stuff in the evenings and hes dropped me a few quid or bought me beer.

Recently, I've done some work for him. In the evenings mainly. But I was in hospital and unable to go to normal client for a few days so he asked me to look at something urgently (I was in hospital when he asked!).

To be honest, I've probably spent 15+ hours now and hes asked me to invoice him. No idea how much I should charge. Probably a bit much to charge my normal day rate.... Hes a really good fella and I know it comes out of his pocket directly ultimately.

BUT I want to get paid just not overdo it. Thoughts?[/QUOTE]

You don't have a contract? If you did the contract would tell you what you could charge and you would give a goodwill discount if you were doing the job for a mate.

So therefore you can't really charge anything.

If he's willing to pay you something the only thing you can do is ask him what he is willing to pay and invoice that amount. I would not be telling him my daily rate that is up to him to put a price on your work and without a contract you have to accept that figure and hope he pays as without a contract your invoice is unenforceable.

[Deleted User]

HappyMJ wrote: »

You don't have a contract? If you did the contract would tell you what you could charge and you would give a goodwill discount if you were doing the job for a mate.

So therefore you can't really charge anything.

If he's willing to pay you something the only thing you can do is ask him what he is willing to pay and invoice that amount. I would not be telling him my daily rate that is up to him to put a price on your work and without a contract you have to accept that figure and hope he pays as without a contract your invoice is unenforceable.

Well aware of that. Hes a good mate - known him for years so hes not going to stitch me up.

He knows my normal daily rate. Sometimes if he wants me to go somewhere on his behalf I take a day off from normal client and he covers the same. I dont gain anything - apart from doing something different for one day.

Mistral001

I would charge him the full hourly rate but then give him a discount. Remember, if you had a shop which sold, say car accessories would you give him a free car radio or free car wax? You might give him 5 or 10% discount which would probably amount to about 20 or 40% of the margin.


Edit. The friend probably deserves a bit of discount in any case as you are less exposed compared to other clients. Unlike other clients, a friend is unlikely to sue you if you make a mistake that leaves him out of pocket. He is unlikely to not pay up either.

paddyrg

All sorts of options depending on how solid or bitty the work is - how about hourly full rate but capped at £less/day for bigger jobs? Or something similar with day/week rates? I think most important is that you're flexible but predictable - he can then plan, and start grouping your work into the least inconvenient ways for you. Instead of 1-2 hrs/day for a week, you could just do all day Friday and reduce the PITA factor whilst still supporting your mate and being fair to yourself.

Fwiw, it's harder going from friends to business partners than the other way round for precisely the problems you're hitting.

CKhalvashi

Mistral001 wrote: »

He is unlikely to not pay up either.

Seriously?

When I was cabbing, it was more often than not private customers as opposed to those out of the office that would take the mick with payment terms, and often it was those that were self-employed and had the money.