A comparison between Time and Material and Fixed bid engagement
Software development engagement series - 3
A comparison betweenTime and Material and Fixed Price engagements for Software Development
Defining the models
Time and Material
When the project scope, specification and implementation plans cannot be precisely defined at the outset or requirements change dynamically during the project implementation process, the time & material model provides the flexibility of varying the size and workloads of the development team assigned to your project, while optimizing time and costs. Under the time & material option, we provide skilled resources and the development effort is billed at the end of every month based on the pre-negotiated and a mutually agreed hourly rate. This engagement can go from a few months to several years.
The total project cost is determined by the amount of time and resources expended and the actual effort towards the development.
A Fixed Price model is viable for projects with well defined requirements and schedules. When your need is clearly specified in sufficient detail, we will estimate the project scope and complexity, and provide a project delivery schedule along with a fixed price for the complete software development.
Under this business model, we ensure quality delivery of the final product within a pre-scheduled timeframe, and you pay a mutually agreed fixed price for the project implementation.
| Fixed Price
When to use
| Fixed Bid
Understanding of Project
Proposal and Schedule
Cost / Fee
| Fixed Price
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iBoss Tech Solutions Pvt. Ltd.
B-59, 1st Floor, Sector -63
Noida – 201301
6916, Castle Peak Drive,
West Hills, CA 91307
US Phone: +1-818-337-4553
UK Phone: +44 - 208-819-9751
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