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Fixed Price Projects - Nailed.

min read

How we create estimations for you that actually hold.

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Lena Schön

Fixed-price models are based on an estimate of the amount of work that needs to be done. Projects which have a fixed-price contract guarantee fixed budget for a project with no dependency on resources or time spend. Signing a fixed-price contract implies a clear plan and definite deadlines for you. This not only gives you financial certainty but also grants you to monitor the status of our software development easily. Furthermore, our teams can fully focus on your needs and problems to create the best possible solution for you

Not Every Project is Qualified for A Fixed-Price Contract

In order to guarantee a successful partnership, certain prerequisites must be in place. Generally spoken, smaller projects with limited features and defined deadlines work best for fixed-price models. Based on our experience, we recommend fixed price offers under following conditions only:

Clearly Defined Scope and Requirements

By clearly defining the project’s scope and requirements with you, we help effectively managing you expectations and are able to understand all the work needed to deliver a certain project.

Delivery Responsibility

By taking delivery responsibility, we can ensure the project success through a flexible, collaborative, efficient and iterative software delivery lifecycle. Managing issues and risks as well as coordinating and overseeing the entire software development process provides us with a complete view of the development as well as grants us access to all relevant information needed for implementation. To further enhance your project's efficiency by optimizing communication patterns within your software architecture, discover why it's crucial to 'Stop Overusing the Outbox Pattern.'

Tech Stack

As there is no uniformly effective technology, making shared decisions on tech stack is crucial for us. Various factors such as requirements, time-to-market, team knowledge or cost, should be discussed together when choosing the right technology for your product. We know the choices can be overwhelming, however, we are happy to take over the research for the best technologies for you.

Figure 1: Teamwork
Figure 1: Teamwork

How does our elaboration and offer process look like?

To quickly identify, if a project fits our working flow and can be implemented as fixed-price project, we came up with a simple process. This procedure does not only avoid unnecessary complexity but allows us and you to save money and time, easily scans quick-wins and increases customer satisfaction.

Step 1: Inception

In the first stage we prioritize understanding you and your pain points. By getting a high-level understanding of the scope of your project, we can already identify whether we are the right partner for you or not. Moreover, analyzing together with you all fundamental needs, wants and wishes of your stakeholders helps us evaluating if a fixed-price package makes sense for your individual challenge and deriving first requirements.

Step 2: Scope Discovery Workshop

Once a high-level understanding of your challenge has been created, we invite you for a more in-depth workshop to understand in detail what functions are needed, and which criteria need to be met. Hereby, your project size determines the length of the workshop – our efficient workshops can be between two hours and a whole day. This meeting does not attempt to define specific user stories or put the design in the focus as this will be part of the execution. Instead we will sharpen a mutual understanding on your acceptance criteria to determine the scope and requirements that must be executed. Together with you, we will create a user story map to better outline all interactions with your users. All of this will help us in estimating effort and duration and avoiding any miscommunication between you and our teams. We will be deciding together whether we will be executing the full project at once or implement an MVP beforehand.

Step 3: Offer

The scope discovery workshop is the backbone of our offer, as an accurate estimation of the problem size is fundamental to satisfactory estimation of time and duration. After gaining a great understanding of your challenge, our developing team is able to judge all project parameters such as effort and time duration taking the problem complexity into account. Thereby, our experts will first discuss the before-defined acceptance criteria and user story map of your project and will then seek to reach consensus on estimate. Afterwards, we will present our offer to you including effort and duration estimation as well as a Statement of Work including all discussed topics of our workshops.

Figure 2: Elaboration & Offer Process
Figure 2: Elaboration & Offer Process

Relationship as the key

As the customer, you are central to our teams during the execution period. Our iterative collaboration allows you to give feedback on new features biweekly, do user testing with your end-customers and stay up-to-date with the developing status. Moreover, we invite you to collaboratively prune the backlog and join vision-alignment meetings to guarantee the best possible digital solution for you and your end-users. Learn more about our approach to Product Delivery that ensures successful project outcomes within fixed price models.

Ready to start your initiative? We are looking forward to hearing from you and cannot wait to tackle your individual challenge together with you!