While defining the scope of work is essential for all contracts it is crucial for firm fixed price level of effort vs time and material as minimizing the number of change orders is critical for the project owner to stay within budget. The total cost of a fixed price contract is known from the outset with a clearly defined scope of work and a minimum number of change orders.
As a result predictability and certainty are likely to increase. Fixed Price Drawbacks Fixed price contracts give a software development company less administrative reporting and accounting work. Still they sometimes offer different levels of insight into how well mobile app development service the contractor is doing in terms of costs. The inability to bargain for a lower price for the same service or product narrows the range of potential outcomes.
If the final project cost is less than projected the contractor makes money on the savings. When you compare fixed price model vs time and material you ll see that changes in the project scope are more challenging to make under a fixed price contract because the contractor s bid is based on the timing and method of project delivery.
發表於 2023-10-14 18:13:46
