Software developers often talk about fixed contracts, so do we. Why fixed contract per project is good for our customers? Let’s talk about it!
In many cases, a contract with defined timelines, fixed prices, and standardized conditions is beneficial for both the developer and customer. How can both parties benefit from the “fixed contract per project” concept?
Customers. A client that knows what he needs exactly will benefit the most from making a deal VIA fixed contract. Often the price of the project changes depending on various circumstances:
- New features. Defined scope is often changed during the development, it happens that before the job of the developer was done, the customer had not thought about incremental feature that seems vital to his project. Adding such feature is worth money and if customers refuse to pay more for said feature, developers might lose interest in the project and software will be lackluster.
- Bad communication. Often many features of the software are poorly described by customers, thus developers have to reiterate a lot of processes in order to deliver a satisfying result. Additional time and effort also cost money.
Customers that have a clear vision of their project and can document its features correctly will enjoy hiring a developer that offers a fixed contract.
Developers. The main concern of the developers is covering risks related to the development process. Common risks for the project are below:
- Changes of technological standards for the project;
- Rescheduling due to unavoidable issues (sick employee, holidays, power outage, etc.);
- Poor decision making when prioritizing different tasks;
- Unavoidable implementation of features that are not listed in contract and others.
If the team of developers already worked on the project for the customer and therefore knows specificities of the upcoming job, it is much easier for them to make a close estimation on how much to ask for their job.
The developer must account risks and estimate his expenses while evaluating fixed contract and making an offer. Well-done management and proper calculations ensure profitable outcome for both developer and customer.
When both parties know what they want to achieve, the fixed contract is the best choice.