Contract Killers

I just read a great article by Andy Budd that talks about an alternative approach to bidding out projects. called “Target-Scope.” It looks like a great idea (it might be akin to what the ZenPrint estimates were like). What do you think about an approach like this?

http://www.digital-web.com/articles/contract_killers/ 

And how do we approach clients so that the discovery phase is a win for both of us?