Fixed Price Model

The fixed price model is useful among the projects with a short life cycle where agility and quick response to market changes are not needed. The fixed nature of such projects leads to a number of benefits and limitations.

Benefits

  • Fixed budget
  • SocialLoft is fully responsible for meeting deadlines
  • No need for project management on the customer side
  • Requirements should be defined before project start
  • Project Scope is fixed
  • Out of scope change requests are paid over budget
  • Highest project risks

Limitations

  • Requirements should be defined before project start
  • Project Scope is fixed
  • Out of scope change requests are paid over budget
  • Highest project risks

Communication

 

 

Process

 

 

Once an enquiry received we start the Requirement analytics phase. During this phase we complete an initial analysis of the project requirements and make an estimate of the project scope and associated risks.

 

When the project scope is ready, we start the estimation phase.

 

If the client approves our estimate and deposit the money, we’ll open a new project on our tracking system (Jira) and establish the project team. Kick off the project and move to implementation step.

 

During the implementation phase the development is split between several iterations, each planned in the beginning and is tracked and evaluated.

 

Once product is ready, the final payment is required. If all money is paid we deliver to the client for acceptance testing at live site.

 

If more requirements are added, we will back to “Requirement Analytics” step.

 

Importance note: This model is fixed price approach so that the scope of the project will be controlled very sticky. Changes that take effect to time and money to develop the agreed requirements will be considered as a change request.

Best fit

  • Non-technical customers with clear Business Vision ready to invest in heavy discovery phase and prototyping
  • Technical customers with well defined project requirements

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