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A design contract stated that work done would be for the cost of (1) final presentation folder design. Upon presenting three concepts to the client for consideration (concept 1&2 being similar and concept 3 being significantly different), they've decided they now want to use both concepts 1 & 3 to have two different folders.

I am trying to determine how I should charge for the license to use this additional design (#3) that is significantly different from concept 1. Just because concept 3 took me less time to create since it was based off some similarities to concept 1 shouldn't meant that its value is strictly based on those hours since the client will have double the benefit of a second folder for their marketing.

I'd appreciate anyone's thoughts on this matter.

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Figure out the hours it took to create concept 1 and use that as your basis to bill out-of-scope for concept 3. Particularly since concept 3 was "significantly different," even if it was based on 1, I'd say you can legitimately bill them for an entirely new design.

For example, if it took (I'm pulling numbers out of the air) 5 hours to create concept 1, 1 hour to vary it for concept 2, and 2.5 hours to vary it for concept 3, I'd bill them for 5 hours (or maybe 4, if #3 isn't reinventing the wheel) for the out-of-scope work to create concept 3.

From there, either revise and present a new contract to cover all the work for both folders or advise the client that everything you do for the second folder will be billed out of scope.

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I agree, having "cost for one" in you contract means repeat the said cost since there are now two folders. – Brian Dillingham Aug 14 '14 at 5:58

Hold them to the contract as the target - any deviance from this is out of scope so must be charged extra. Explaining and negotiating this sort of thing become easier and as long as the client understands and respects transparency in your terms - they should not be offended or deterred if they have a business acumen.

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