With this contract or billing model, we offer our customers a fixed price for the entire project or service.
All services to be provided are documented in detail in a service note and the payment plan is in the form of milestone payments or e.g. for maintenance and support projects in the form of monthly flat rates.
The customer leaves it up to us to decide how many and which employees will work on the project – because the price set is independent of the workload and working hours of the service provider.
With the fixed price model, the customer also has cost security and is not surprised with additional costs.
It should be noted that only the performance and not the result is owed.
With an agile fixed price, the contractual partners agree on a rough description of the desired goal at the start of the project. The key fixed points are discussed, but detailed descriptions are not provided. At the beginning, test sprints are carried out in which the implementation already takes place. Based on the experience gained in this phase, the framework conditions are then fine-tuned and fixed.
Agile fixed prices for projects therefore make it possible to dynamically adapt points and targets to the ongoing project. In fixed work contracts, this procedure is excluded by design. And if it turns out that the end result of an agile project is not satisfactory or the goal has been reached earlier than expected, the collaboration can be terminated.
With this billing model, we bill the exact amount of work according to a set daily rate, which ensures the highest possible transparency and flexibility.
An upper limit of person-days, which usually results from the effort estimate, serves as a guide and ensures that the effort is within specified limits. If it happens that the amount of work is approaching the upper limit and perhaps even appears to be beyond it, we will of course inform our customers directly in order to discuss how to proceed.
This billing model offers a high degree of flexibility and is particularly suitable for projects whose requirements are not yet precisely known or where frequent changes may occur.
With this model, we guarantee the successful completion of the commissioned work with the following agreed points: performance parameters, timing and price. We also ensure that it remains in perfect and functional condition even after the rollout (“warranty”).
As with a fixed-price service contract, a service note is created here in which all the services to be provided are documented in detail.
With this contract model, billing only takes place after the work has been successfully completed.
The billing model is recommended for all projects in which a high percentage of the end result has already been determined and in which few changes (“change requests”) are necessary. With this model, we don’t owe the performance, but rather the finished work. The way to get there and also the cost and time risk lies entirely with us.
