All work but the agency is estimated at time of briefing and approved. A common hybrid model sees a small retainer underpinning this approach to provide consistency of account management. Projects can either be held to the approved estimate or reconciled to actual.
- Where projects are either particular complex or unique then the agency fee is best based on an estimated resource plan and cost to deliver the project.
- This requires the project to be well specified with detailed deliverables and outputs and project milestones and timelines.
- Changes to the project specification requires an additional estimate for approval to cover the proposed changes.
- Also estimated project fees can have variable components outside the estimated and approved fee such as production, which would be added as a mark up or an additional estimated resource fee.