Time and Material vs. Fixed Price: What Works for Your Project?

Time and Material vs. Fixed Price

What is a Fixed-Price model?

When is it appropriate to go for a Fixed-Price contract?

  • It’s a small or medium-sized project or a minimum viable product (MVP).
  • You have communicated your requirements and expectations to the developers clearly — by which we mean that you can describe the user’s journey step by step and have some experience creating user stories.
  • The project’s specifications will remain constant.
  • You have no reason or time to meet with the development team.
  • You have a restricted budget for the project, or you must first get approval for the project’s budget.
  • And you are not concerned with the project’s duration but with the deliverables, which implies that the project may be completed sooner than anticipated, but you will still be paid the projected cost.

How are the Time and Material model defined?

Consider the following before committing to a T&M contract:

When is it appropriate to select a T&M contract?

  • It’s a complex or lengthy endeavor.
  • You are unaware of the product’s entire breadth; all you have is a brief description.
  • The criteria or regulations are likely to vary over time.
  • You want complete control over the product’s conception and development.
  • It would be best if you had maximal adaptability.
  • You want to be compensated only for time spent; compared to a Fixed-Price model, this is the most cost-effective method for long-term projects with variable scopes.

Conclusion

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Aalpha is specialist India based Software Solutions company providing solutions for Web and Mobile development, https://www.aalpha.net

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Aalpha Information Systems India Pvt. Ltd.

Aalpha Information Systems India Pvt. Ltd.

Aalpha is specialist India based Software Solutions company providing solutions for Web and Mobile development, https://www.aalpha.net

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