Hi Michael and Mehdi too,

I would offer, for your consideration, the following correction to your statement about the cost of materials.



I would suggest that it is not reasonable to either expect or accept a 1 to 1 reimbursal for expenses. There is a time value of money issue here. A client must pay for the use of my capital if he requires it for the furtherance of his project. Therefore, in general one should mark up any materials that you must provide. Moreover, unless it is a well known client with which you have done business before, you should mark up your expenses at a high-risk venture rate. Give your client an incentive to provide you with needed materials at their own expense.

There may be exceptions to this rule, but it is nonetheless a good general rule. It is also a question as to just how much it applies to am electronics design contract. If all you produce are some printouts and an electronic compilation, then it doesn't really apply. But if you have to produce a prototype, mark up the materials or have the client procure them. But don't let someone else use your money for free.