For website maintenance, we use a ticket system and charge people by the half hour in the form of pre-paid “Maintenance Blocks” we call them. This encourages them to save up 2-3 small updates (if they can wait) and we do them all at once. We then just deduct a block or two from them account. They need a positive balance in order to have any work done. It works well.

For quoting new work, we’ve gotten very good at estimating the work. We know how long work will take and then set the limits as to what we will do. When it looks like new requests come in that change the project, we do an estimate for the add-on work before we even touch it. This was hard to do at first but now it’s easier.

The best part about being able to turn around any website maintenance in 24 hours is that that’s 10 days faster than most of our competition. Website developers are notoriously slow at making updates for some reason. That’s great for us. And giving people the ability to update 90% of their website themselves with a CMS works like a charm and keeps those websites up to date.

-Tony

* How do you handle your web maintenance contracts for clients?
I offer ad-hoc per-hour (with 1/2 hour min) or a 3-month contract for a flat rate that includes all updates, edits, other minor things.

* Hourly or Per Project?
My estimate is based on my hourly rate, but I think starting this year I will present it as a flat fee, and then let the client know if something goes out-of-scope of the original estimate.

* How do you close the initial design phase and move to maintenance?
Basically once all the content is in place and the client has paid their final invoice.

* Do you use a web app to keep track of your contracts, if so, what one?
No, but I do use OfficeTime, which is a really handy program for Mac with awesome customer support.

* Do you send your contract print, electronic or both?
Yikes, so far my contracts are verbal agreements – no signatures involved. I know this is asking for trouble. Next client – written contract.

Hourly or Per Project?
We generally charge on a per project basis as most of our clients come to us for websites, logos, custom web applications etc. These are all fairly large projects and as such, we treat them that way. Our pricing structure has been designed around various hourly rates, however I think its important to note that if you are charging hourly, you should charge a different amount for different services. If you don’t, you’re almost saying that all of your work is worth the same amount when in most cases it isn’t.

How do you close the initial design phase and move to maintenance?
Similar to Liam McKay of Function, we develop websites/logos/etc as a project and then any work conducted outside of that project would be considered maintenance. We offer maintenance either via an hourly rate or as part of a maintenance contract.

Do you use a web app to keep track of your contracts, if so, what one?
Not really – no. At present, we simply follow the amount of hours that remain on each customer’s account in our accounting software. This seems to work quite well although it would be fantastic if this was incorporated somehow into one of the 37 Signals applications.

Do you send your contract print, electronic or both?
We send it via electronic/PDF format, however we request that the client fax/post the signed copy to us. We are finding that we may need to switch to 100% electronic though due to some of our clients living overseas etc.

Finally, brilliant post Andrew. A real good subject to touch on as I think many of us have struggled with maintenance contracts at one point or another. :) Keep up the awesome work!

JB

Hourly or Per Project?
I’m currently charging hourly rates, although I have considered per project, or even a mix of the two for future projects.

Do you use a web app to keep track of your contracts, if so, what one?
Good old Google Docs Spreadsheet for now, although it would be nice in the future.

Do you send your contract print, electronic or both?
Electronic, although if a client wants a hard copy that can be arranged.

Great article, and the addition of other web professionals feedback is a nice touch!

JB Design and Photo´s last post was… ReDesign of JB Design and Photo Website is live

I’ve decided on a flat monthly fee that covers 1 hour of time. Each additional hour of work is a reduced amount. This is for a 3 month contract to see how much work is truly happening and then myself or the client can adjust the contract at the end of 3 months.

I tend to send out e-mailed PDF’s with the contract and sign it then have the client sign mail or fax it back with the up front retainer fee for services.

Preston M´s last post was… Article Delay

This firm, Merix Studios, offers it as a “partnership”:
http://www.merixstudio.com/company/partnership

While Enrichmint offers their service as a monthly fee.
http://www.enrichmint.com/

In both their cases I am sure that they screen potential clients. In the case of a flat fee, you wouldn’t want to pick up a client who wants daily updates that would take hours if you have only $400/month reservoir.

So that’s my two cents brain food for the crowd. Great article!

Zach Dunn´s last post was… 6 Reasons Websites Fail at Getting Their Points Across