Engagement Models / Fixed cost model

Fixed Cost Model-

This model is efficient and suitable when project requirements are crystal clear. A ball park estimate is quoted initially which is based on mutual understanding and agreed terms. The project is executed around the estimated cost. This provides a low-risk option and guarantees the delivery of project on-time, within budget. The initial requirement in this model, i.e. work scope, project data, price, etc... is agreed initially before starting the project. For any change in project work during the execution of project development, client is charged for the extra feature and functionality.

This model provides various features, some of those are:

  • Fixed price
  • Fixed time
  • Well-defined requirements
  • Request a change
  • Phased approach

As the name suggests this model have fixed Cost & time, there are not much of risks for both parties. The main benefit of the model is low risks and predictability of the project execution, which, mostly, depend on the quality, magnitude of work, efforts spent to specify the project requirements. Scope will be finalized by mutual discussion with you and Vailca Info Tech. So this is a perfect model for projects with time constraints and so works perfectly where specifications of the project requirement/product are clear.