Fixed cost model

Overview

The fixed cost model has only one requirement: it is mainly used in projects with a precisely defined result. When it is clear what to do, the advantages of the pricing model are convincing. The workload is correctly estimated so that the project will be completed on time. This model is mostly suitable for small projects (50 – 75 person-days).

Applicability

The fixed cost model is ideal for familiar and well-defined projects with low to medium complexity. The model requires well-written requirements in the form of specification documents. This makes it possible to know all project-related risks in advance. The projects are usually neither changed nor expanded during implementation. The fixed cost model requires a certain amount of customer involvement in the form of timely and relevant feedback and decisions.

Process

You provide avidacare with a detailed document with the technical requirements. Reviewing the specifications together ensures that all assumptions and details are explicit. avidacare creates a price offer with a fixed price and a fixed time frame for the project implementation. You and avidacare conclude an agreement in which all the details are listed. The project will be implemented in strict accordance with the agreement.

Advantages

The main advantage of the model is the low risk and predictability of the project results, but this depends on the quality and quantity of the effort put into defining the project requirements. As an additional service, avidacare offers business consulting for project appraisal and specification.