Fixed Price Project

What elements do we consider when
defining the price for a fixed price project?

Scope

A key component to a fixed price project is the scope of work. Clarity is not only desired it’s a must. This is an element we will collaborate on so that expectations on both sides can be met.

Complexity

While some complexity can be reflected in the scope of work, highly complex projects with many inter-dependencies can consume more resources and hence require a weighting factor.

Timeline

Projects often have a natural timeline that fits well with the scope of work. On occasion external factors can cause a timeline to be compressed. Aggressive timelines can also cause a fixed price to be weighted more heavily, and the same can be said for long time frames that are telescoped beyond the natural length implied by the scope.

Resources

The experience level of the resources from both customer and service provider are also a factor to be considered when fixing a price for a project. Naturally more experienced resources produce work product more rapidly and therefore can impact project timelines favourably and the converse is true for lesser experienced resources.