Fixed Price Model
With the fixed price model, we develop and deliver applications and services at a fixed overall price in accordance with initially agreed scope, specifications, and required delivery timeline. In other words, Details of the development and the required resources as well as project pricing are all defined at the beginning of the arrangement. The fixed price model is suitable for projects for which the specifications are largely already determined by the client, for which substantial changes are not anticipated, and for which the client has a strict delivery deadline.
Where a client wishes to use the fixed price model, but where the details of the development are not yet sufficiently determined, we might recommend that Monstar Lab engages first in a planning and design phase before entering the development phase. This would facilitate preparation of good specification documents, which will help avoid disruptions or delays during the development stages. Please see “Project Planning” for more details.
Points to Note Regarding the Fixed Price Model
As a general rule, with the Fixed Price Model it is not possible to change the development specification midway through a project. If there is a need to modify the initial specification, it may be necessary to review the original team setup, project plan and project pricing.
For projects that involve a phased development, where there are anticipated revisions or improvements to specifications and frequent add-ons of additional functionality, it is recommended that you choose another engagement model, such as our Dedicated Development Team or Time and Material service. These other engagement models enable development resources to be secured for a specified period of time, and allow for a more flexible development compared to the Fixed Price model.