Steve,

Tom's point about a time limit is a must.

I sell two ways, which I explain to the client:

1. We can contract to do a job based upon very complete
specs. If the client finds things to change or add, they
must sign an add-on contract. I explain to the client that
there is no way I can estimate exactly, and that if I work
with a fixed *bid*, I multiply my hours/price by 4. I also
give 30 days, and they invariablly talk me up to 90. Often,
the client wants to withold a percentage until the period
ends. I permit 10%. Usually, the people who go for this
payment method are MIS or others that have their jobs as
their primary interest, not the development cycle.

2. I work hand-in hand with the client through every phase
of the development and implementation cycle, for an hourly
rate. If the client finds things to add or change, it is
fine. I explain that this is an *evolutionary* process, it
is friendly, and produces a better product. I revise the
estimate for bugetary purposes, at meaningful milestones.

90% of my clients choose # 2, possibly because of my
references, but definitely because it is cheaper. I have
paid my dues, and let them know that I will bid high enough
so I will not get hurt. If the client is worth having, they
appreciate the candor. The warranty is not an issue.

Also - I tell a client that they have a choice: I do the
testing, or they do. If they do the testing it is *much*
cheaper. I simply handle what they want, and bill for my
time.

Best,
Randy