Pricing
There is a basic template for pricing on all Letters of Engagement (LOEs) used by the team (see
Addendum 13). The various tasks performed by the organization are laid out on a backup sheet
where items that pertain to the specific job can be moved to the calculation page. Once all tasks are
listed out for the specific client, calculations are made based on the per hour to operate the office,
tiered hourly rates of staff and current mileage rate. A growth rate is then applied to this number to
get the final cost of the LOE. LOE cost is good for 60 days.
Letter of Engagement (LOE – see Addendum 10)
Once the potential project has been put through the pricing model and a cost for the project is
calculated, it is time to draft an LOE. The LOE should begin with the template provided and
include a brief one sentence description of the relationship and work to be done. It then should
include the scope of work to be delivered by the organization laid out point by point. This should
tie directly to the items on the pricing model. The LOE should also clearly define items not
included in the LOE such as construction documents, surveys, engineers, architects, measuring, etc.
The next item should be the responsibilities of the client.
Once the above information is clearly laid out, the next part of the LOE is the schedule. It is very
important that this area specifies when the work will begin and how long it will last. If work begins
with a signed LOE, say that. If it begins with first payment, make that clear. It is also important to
schedule with all other projects in mind. Time management will be critical.
Finally, the LOE should list the fee structure with specific information about due dates. This is also
the area where any contributions from the district, conference or other entities would be listed.
Before the closing and signature, make sure to list in a clear way the expiration date of the LOE.
This is necessary to avoid any confusion.
Have the letter signed by the President/CEO and leave space for 2 signatures from the client. Also,
make sure all parties who need to receive communication about this project are copied. This might
include a DS, a senior pastor or other conference staff member.