Understanding the Fixed-Price Software Development
Startup with no big investment, medium business and enterprise with a clear MVP who want to sell the product may have difficulty in developing a project with a limited budget. If you are familiar with system information and Startup progress, you will know about fixed-price software development model.
A fixed-price model is a contract based on an estimate of the amount of work that needs to be done. In this project, the client will have a discussion with the vendor about the requirement and the available budget. After that, the vendor gives an estimated project budget and timeline. The fixed-priced project is a short term project. Thus this is suitable for Startup or enterprise which want to develop or build in the 4 months or less.
Fixed-Price Software Development Procedure
There are several procedures that the clients have in having a fixed-price software development.
- Before both parties agree on the contract, they will have a discussion about product specification, its UI/UX design, and acceptance criteria. These requirements must either be created by the client or elaborated together with the vendor and then clarified and approved.
- After they agree on the contact, the vendor will have an offer of implementation consisting of collaboration, goal, scope, timeline, billing, terms of acceptance, and procedure of work with change requests.
- When everything is clear, the project will begin to run. Usually, the client needs to pay the down-payment. Each vendor will have a standard down-payment. The rest of billing can be paid when the milestone.
- After the whole project is almost done, the team will do some test. This is a well-known alpha testing. The team makes sure that the product works properly on a test server.
- The project goes the final milestone.
- The client has an acceptance period. It checks the final works based on the upfront agreement.
- The vendor will have a final billing and some feedbacks.
- The Advantages Fixed-Price Project
The fixed-priced project does not only save your budget, but it also has several benefits:
- Clear requirements and well-defined objectives and milestones
- Suitable for small and medium enterprise
- Completed project within the agreed budget and timeline
- The contractor is highly motivated to be productive and efficient
- No need to hire many developers to test drive your product
- Flexibility to do other business tasks besides building project
As there are many demands on the fixed-priced project, Emveep has the service and helps many enterprises to build their project. Our clients come from a different business background in various countries. Now, you can also have your own project even though you have a limited budget.
Let’s talk to us, we’d like to hear your project!