EDGE Software Inc. has two general methods of payment for its services: fixed cost and hourly.
Fixed cost is used primarily when there is a clearly defined project. For
example, the goals, tasks, and scope of the project are well defined. This method is often used for
our application development efforts in the Windows environment. The end project cost is directly
proportional to the complexity and scale of the application and are negotiated on a project-by-project
The hourly method is used when these items are less clear. For example, on an R&D project, or when it is not practical to thoroughly define a project up-front due to time
limitations or lack of information. This method is more common in the EDA industry. Hourly rates
vary based on type of work, the experience level of the person performing the work, and the length
of the engagement. Engagement terms are generally: Individual hourly, 3 months, 6 months, and 12
months with rates decreasing for longer term engagements. Rates range are from $30/hr for low-end
documentation and testing up to $150/hr and higher for top-level project management and high-end
EDGE Software's rates are structured to maximize the value for its
clients. Rates are scaled according to the type of work done and the experience of the individual
doing the work. EDGE staffs projects with the proper combination of team members to maximize
the return for the customer thus saving them time and money.
EDGE Software's standard billing practice is to invoice semimonthly
with payment due within two weeks of the invoice date. This practice is used on all hourly
contracts unless a separate payment arrangement has been negotiated. Billing terms on fixed price
contracts is always defined within the project's contract. These terms generally reflect a percentage
up-front, a percentage upon completion of a significant milestone, a percentage upon delivery, and a
percentage as a retainer until final acceptance by the client.