enigma1 - 3:51 pm on Jul 20, 2009 (gmt 0)

my lower costs would help me compete

I am not sure why you think this as an advantage. It really depends where you're located. If you're in Madrid or Barcelona vs someone in UK's small towns your rates will be likely higher.

Another thing is how fast you do the service. Is not just the rates. Someone can bid with a low rate but take long time to finish the work and eventually the total is higher than someone else who seems to have higher rates.

As of contracts depends on the project. If it's a bug fix or minor modifications you will likely spend more time to write the contract than do the job. There are always risks but keep a balance.