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Freelance software developers: How do you charge for your work? It can be difficult to structure your billing so that you get paid on time in a way that makes economic sense for you and your customer. How can you do it?

Time-based billing by the hour or the day is one way, but it has its downsides. If you're really good at what you do, then you put yourself at a disadvantage, because you'll be highly productive on the job while earning a set amount. The more productive you are, the less profitable your work is for you. The other problem with an hourly or daily rate is your scalability. Time-based invoices come with a ceiling. There are only so many hours in the day, and days in the week. You limit what you can earn, unless you keep increasingly your hourly rate.

Project-based costs are another option. Charging a set fee for the whole project enables you to capitalise on your productivity. Getting it done quickly while hitting the project requirements enables you to increase your earning potential. But this carries two dangers: scope creep, and cashflow issues. The bigger a project is, the more difficult it becomes to accurately scope the requirements and the harder it is to get clients to stick to them. And while some clients may be prepared to lay down a significant advance up front, many won't be, meaning that you don't eat until you're done.

One other way to charge stems from agile development processes that break programming jobs down into more manageable chunks. It involves partitioning the project into user stories. A contractor friend of mine who works remotely and for multiple clients does this on a regular basis. User stories break down the functionality of a program into small tasks that correlate to tasks that the users of the system would understand and identify with. 

A user story for an online library system could be "As a user, I want to renew a book so that I can read it for longer". Another could be: "As a user, I want to reserve a book so that I borrow it when it becomes available". 

These stories are understandable enough that the client will feel comfortable about what they are paying for, and small enough that they can be coded in a couple of days and billed for in a granular way. They also provide freelance programmers with a way to more easily reuse code, as many user stories may use the same underlying functionality.

There are doubtless some projects that this won't work very well for. It might be inefficient in terms of time to break down very small projects that only involve a week of work into different user stories. And projects that users never see (perhaps certain embedded systems, or complex back-end financial algorithms) might not be a good fit. But for straightforward projects such as web applications, this could be a good way to charge the client equitably and clearly - while also providing a structure for yourself to tackle the project in the process.

For many years the most dynamic and cutting-edge IT roles have traditionally been seen as the sole territory of the private sector, yet on closer inspection there are some mouth-watering opportunities available if you choose to go public.

Just as many private companies aim to maximise productivity and efficiency, the same rings true in the public sector, with IT playing a central role in achieving and delivering those goals. Several large-scale projects with a significant IT presence will be launching over the next few years, which in turn may swell the opportunities open to IT workers looking to delve into the world of the public sector. The government's £1.2bn investment in the e-borders initiative as well as numerous opportunities arising from the London 2012 Olympics are just some examples of where both permanent and contract work will be available over the coming years.

If you're thinking of making the move from private through to public then there will be numerous differences to take into consideration. For example, in the private sector when there's a problem, there's often a tendency to throw money at it until a solution is found. Public sector IT is largely governed by strict budgets, which are set annually and fixed, its important to consider some of the experience you have developed in managing budgets in the past and apply them in your future role. What's more, salary and career progression could be a little slower off the mark in the public sector as the variety and scope of opportunities is slightly more limited. However, what you get in return is a chance to be part of some dynamic upcoming IT projects, job security, peace of mind, good holiday entitlement and an excellent pension. All in all, definitely worthy of your consideration!

So you've been offered a job - either through an application / interview process, via an agency or a direct recommendation.

Great news, right? Usually, yes - at least assuming you were looking for a new position in the first place. But what if the offer is out of the blue? Should you take the risk of switching jobs for the benefit of your career, or is it better to play it safe?


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As the credit crunch bites, IT contractors are quickly picking up the pace as organisations look to take action as the permanent market begins to slow. Although hiring contractors can be pricier than salaried employees, it's often the case that companies are more likely to pay that little bit extra to hire someone on a temporary basis to allow them to switch that resource on and off as needed. In the current climate it's a certainly a trend we've seen developing.

For those considering a move into contract work there are certainly benefits. For permanent staff, many employment niggles lie with a lack of variety of opportunities available. For many contractors the freedom and flexibility of their work allows them to focus on a specific project and remain 'psychologically distant' from company politics, moving on to new opportunities when the occasion arises or according to their own circumstances.

For the uninitiated - on a typical contract, you'd spend around 8 hours a day, for 5 days a week working on a specific project, with your roles, responsibilities and goals outlined in your contract description. Typically your work would be overseen and monitored by a manager within the organisation. However as jobs tumble, contractors and temporary staff are often the first to feel the effects.

One of the issues people have with moving into contract work is the very cutthroat nature of the business. As competition increases, we've also seen contract pay rates decrease over the last few weeks, so there are a number of reasons to weigh up the pros and cons of such a move before diving in. For those IT staff currently working on contract the expectation of going from one role to another in quick succession has been tempered, forcing contractors to be much more pragmatic about their work.

The overall feeling remains optimistic; as organisations seek short-term measures to offset a period of instability, opportunities will be there. It's for those with the right skills, determination and confidence to go out and take them.

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