Transparency in the project ensures trust and smoother processes.
Fixed price
versus T&M
Fixed-price projects initially convey a sense of control for the customer. But this supposed security is deceptive. Fixed prices presuppose planning reliability and imply immutability.
Yet one thing is always certain: requirements and circumstances change. In addition, risk surcharges and change management are factored in, which always leads to higher costs.
Such projects often create an invisible barrier between the customer and the service provider. On the one hand, there is the customer, who assumes that everything, or at least most of it, is included in the fixed price, and on the other hand, there is the service provider, who has to limit himself to what was agreed in the fixed price contract. Innovative suggestions fall by the wayside or have to be charged extra and go beyond the budget.
In fact, a trusting collaboration requires the commitment of both sides to the matter at hand. And if the customer takes on the operational risk and becomes an integral part of the project, then Time & Material projects can be implemented efficiently and cost-effectively. It is illusory to believe that fixed prices can be adhered to if you do not actively participate in their execution.
Our Approach
We operate almost exclusively in time & material format because it creates a close relationship with the customer and their objectives. In addition, it strengthens trust and is usually increasingly cost-effective for customers.
Another aspect is the reporting we provide so that customers can better perceive the operational risk. We deliver reporting mostly on a weekly basis (and thus more frequent, than 2-week sprints in development) by our project managers in a special format that provides a quick overview of all areas of implementation.
Each weekly report allows you to immediately intervene in issues if they are not running as planned and then come up with solutions to improve the progress of the process at that point in time. In addition, it is also possible to see what has been completed in the project or the status of the individual tasks.
Let’s talk
Do you need a specific offer or a sparring partner to discuss ideas?
Just contact us:
- experts@striped-giraffe.com
- +49 (0)89-416 126-667
We will be happy to support you.
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