A blended rate is meaningful only when the team composition and underlying commercial terms are visible.
What to expect
- 01
Request the underlying rates
Even for fixed-price projects, agreed day rates provide a basis for handling additional work before the negotiation leverage disappears.
- 02
Standardise the commercial template
Specify billing units, expenses, delivery mode and rank definitions so that providers submit comparable information.
- 03
Account for the staffing mix
A blended rate is a weighted average. Examine the share of each rank and use reference relationships to make assumptions transparent.
- 04
Use benchmarks without buying on price alone
Rates from real projects and framework agreements support negotiations. Provider selection still needs to consider the quality of the proposed solution.
About the author
As co-founder of apadua, I focus on how procurement can strengthen its contribution to the business. In this article, I explore how rate cards and team composition make consulting proposals more comparable.
