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
- AltexSoft is fully responsible for meeting deadlines
- No need for project management on the customer side
Limitations
- Requirements should be defined before project start
- Project Scope is fixed
- Out of scope change requests are paid over budget
- Highest project risks
Management process
Once an enquiry received we start the discovery phase. During this phase we complete an initial analysis of the project requirements and make an estimate of the project scope and associated risks.
We decide on the possibility of taking a fixed price approach, taking into consideration the availability of detailed Software Requirements Specification document (SRS). If it is not readily available, we also assess what needs to be done in order to obtain it. It is possible to run a business analysis phase as a separate project to gather SRS.
When the SRS is ready, we start the estimation phase. The obtained specification is used to produce high level system architecture design and a detailed implementation estimate.
If the client approves our estimate and provides their desired implementation timeline, we start the proposal phase. We plan a project team, milestones and release date. The plans are described in the project structure definition document which is proposed for approval to client.
After that we start the negotiation phase and sign an independent contractor agreement with all project documentation included.
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 it will be delivered to the client for acceptance with test reports proving each requirement is verified and confirmed.
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