Our services
are generally structured as consulting services, whereby we
bill for our services monthly based on the work performed, sometimes
with success fees as well. We evaluate each project independently
based on our ability to add value for the client, and the potential
of the project to be creative, successful and profitable.
• Commercial Services: Any commercial entity we accept
as a client may contract directly with LigJig, LLC.
• Fee and Compensation Structure: Our forms of compensation
are outlined below. We will engage in the exploration of new
project opportunities usually without charge. After this preliminary
step, we will establish agreed-upon steps and goals, then create
a budget and a proposal. LigJig bills monthly, and we usually
require a deposit or monthly retainer for non-government clients.
• Time and Materials: Time and materials are billed on
an hourly basis, with different rates for each category of skill
set. "Other Direct Costs" (ODC) such as travel, meals,
photocopies, etc., will be billed through to the client as well.
Our rate structure is available upon request. Hourly rates can
be reduced, either for large, long-term projects, or in return
for a greater upside (stock or other incentive compensation).
• Cost Plus Fixed Fee: Cost Plus Fixed Fee involves billing
for all direct labor costs, plus an overhead factor which represents
our overhead costs as a multiple of labor costs, plus other
direct costs, plus a pre-negotiated fee or profit. For general
information regarding our labor cost structure and current overhead
multiplier, please contact our office.
• Fixed Price: If the client's needs and deliverables
can be clearly established, and we feel we can clearly estimate
the work involved, LigJig can work on firm fixed price basis,
although this is not our common practice.
• Success Fees/Equity Participation: Except for direct
government work, we are looking for an upside participation
based on the ultimate success of the venture. This is usually
structured as a success fee, usually in the form of both cash
and equity. The terms are negotiated up front, with modifications
as necessary to meet our mutual needs. Fund raising is usually
done partially on a success fee basis. If we accept the engagement,
we will require a fixed fee component paid in advance. The success
fee will include both a cash and equity (stock) component, earned
upon achieving the agreed upon milestones. These milestones
would typically be based on successfully raising investment
capital, but could include other critical objectives such as
hiring key executives, entering into strategic partnerships,
and procuring additional research grants.