Question 1

How much contingency should I add to a project quote?

Accepted Answer

10–20% is the industry standard range. Use 10% for well-scoped projects with a known client, 15% for moderately complex work, and 20% or more for anything involving unclear requirements, new technology, or a client you haven't worked with before. Contingency covers scope creep, unexpected technical issues, and revision rounds beyond what was agreed.

Question 2

Should I charge a markup on subcontractor costs?

Accepted Answer

Yes — typically 15–25%. You are taking on the risk of managing subcontractors, absorbing any quality issues, and are ultimately responsible to the client for their work. A 20% management margin on subcontractor costs is standard. Be transparent about this in your contract if the client is likely to ask.

Question 3

When should I add GST to a project quote?

Accepted Answer

Add GST if you're registered for GST (required above $75,000 annual turnover). Your quote should always state whether it's ex-GST or inc-GST. Most business-to-business quotes in Australia are presented ex-GST, with GST itemised separately. If quoting to a consumer, inc-GST pricing is usually clearer.

Question 4

Should I quote a fixed price or hourly rate?

Accepted Answer

Fixed-price suits well-scoped projects with clear deliverables — it reduces client uncertainty and protects you from scope creep when managed properly with a change request process. Hourly suits consulting, advisory, or ongoing work where scope is hard to define. Many freelancers use a hybrid: a fixed price based on estimated hours, with a clause for additional hours if scope changes.

Question 5

How do I handle scope creep in my quotes?

Accepted Answer

Define what's explicitly included and excluded in your quote. Include a change request clause that specifies any out-of-scope work will be quoted separately before commencing. When clients ask for extras mid-project, refer back to the scope, raise a change order, get written approval, and charge for it. Undocumented scope creep is the number-one reason freelancers under-earn.

Question 6

What's a good profit margin for project work?

Accepted Answer

For a solo freelancer, 'profit margin' in the traditional sense is baked into your day rate. The margin toggle is most useful for agencies or freelancers who want to build in a buffer above their cost of delivery — useful when you're quoting to a client and want room to negotiate. 15–30% is typical for agency work. Sole traders often skip this and rely on their hourly rate to do the work.

Activity	Typical hours
Scoping calls and discovery	2–8h
Writing the proposal / SOW	1–4h
Client communication throughout	2–10h
Feedback rounds and revisions	4–20h
Internal review and QA	2–8h
Handover, documentation, training	2–8h
Admin: invoicing, chasing payment	1–3h

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