Fixed Cost model
This model is used when the project specifications are well defined and the client wants to limit time and cost exposure. This is a popular engagement model which clients feel comfortable dealing with as it gives them a budget. The emphasis is on money. Development cost of the project will be arrived at by multiplying the effort estimate for that specific project and agreed rate.
- Customer provides detailed Requirement Specifications then 99Digits technical experts would undergo a study on that particular requirement and come up with a requirement understanding document (RUD).
- After getting the positive feed back off the client then 99Digits experts would go for a project proposal containing a fixed cost and fixed time for the project execution subject to the given constraints.
- Once the proposal is approved, 99Digits delivers the agreed project authorization document (PAD) on the agreed schedule subject to the acceptance criteria set forth before the creation of the project authorization document (PAD).
- This will be designed based on mutually agreed specifications.
- This model’s success relies on the active cooperation of the client.
- Well defined – Project requirement is well defined so that all risks are identified and all assumptions are explicit
- Legibility – Legibility in terms and conditions lead the project execution easy.
- Risk Management – Limited risk to both parties as the scope: price and timelines are fixed in this model.