nlevit Posted October 30, 2009 Report Share Posted October 30, 2009 I have to issue a new contract to an advertising firm. they design and place adds for us in mulitple types of media: magazines, sides of buses, etc. I know that the part of the subcontract where they are designing the adds will be T&M for their time and materials. The also do the research and place the adds and then charge the cost of the advertisement back to our company plus a fee based on the cost of the add. I know that cost plus % of cost is illegal, but what type of subcontract will the second part of the work be considered? thanks Link to comment Share on other sites More sharing options...
bremen Posted October 30, 2009 Report Share Posted October 30, 2009 The also do the research and place the adds and then charge the cost of the advertisement back to our company plus a fee based on the cost of the add. We stopped letting the contractor charge a fee and instead they charge their hourly rate based on the complexity (dollar value and medium) of the placement. I've also seen a companies create a media buy plan with a fixed price for purchasing all of the advertising. Link to comment Share on other sites More sharing options...
nlevit Posted November 2, 2009 Author Report Share Posted November 2, 2009 We stopped letting the contractor charge a fee and instead they charge their hourly rate based on the complexity (dollar value and medium) of the placement.I've also seen a companies create a media buy plan with a fixed price for purchasing all of the advertising. thanks. i will negotiate one of those ways of billing. Link to comment Share on other sites More sharing options...
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