Our Cooperation Models
|Fixed Price||Time and Material||Dedicated Team|
|General Description||So called “money for result”. A fixed price model defines the service to be provided very specifically, and then sets a single price for the project, regardless of how much time and expense the Supplier’s company incurs.||So called “money for time & resources spent”. Supplier provides specialists of certain professional level and Customer pays only for time and resources spent on the project.In case of partial workload minimum quota per month is set up and terms of specialists’ availability influence on rates.||Supplier will build a team of resources according to Customer project requirements. Payment is made according to allocated team time. The Customer is responsible for providing adequate workload to keep dedicated team busy. Supplier provides
estimates for planned work, but these estimates are used for planning, not for price estimations or invoicing.
|When model is used?||Exact requirements, detailed specification, strict deadlines for delivery. Customer clearly knows what does he want to get in the end of the development.Ideal for projects with fixed requirements, budgets and strict deadlines.||No complete vision of the final product and no exact terms of delivery. Possibility for creation of work team with specified workload . Paid min. quota (for example 50% of usual month workload).Ideal for Agile development methodologies. Ideal for projects developing MVPs, prototypes or for teams that are part of remote customer team||No complete vision of the final product and no exact terms of delivery. Need of long-term expertise focus in a fixed team. Assumed 100% of workload, paid downtime.Ideal for Agile development methodologies. Ideal for regular product development & support|
|Customer advantages / disadvantages||Advantages:
|Requirements (for Customer)||Exact specification.All changes to specification are estimated and planned separately||Partial requirements.Adequate workload for team (according to minimum quota)||Adequate workload for team|
|Requirements (for Supplier)||Exact estimation and Project Plan. Meeting the deadlines.Adequate Quality of Service||Rough estimation for planning.Adequate Quality of Service||Rough estimation for planning.Adequate Quality of Service|
|How work scope is defined?||Scope is defined in specification and is implemented in Project Plan.||Upon agreement. Usually work is defined in form of short user stories that might be made more precise during implementation.Approximate Project Plan and estimation can be provided as orientation.||Upon agreement. Can be defined in approximate Project Plan.|
|How work costs are defined?||Cost of the project is based on estimation and is a part of commercial offer.Costs are based on estimation model, personal rates and risks.||Daily rates for different specialists are agreed upfront.At the end of each month Supplier provides Customer with the invoice based on amount of time and resources expended. Weekly reports on spent time are sent to Customer.||Monthly rates for different specialists are agreed upfront.Payment is made upfront for the whole month of team allocation. Paid downtime. Weekly reports on spent time are sent to Customer.|
|Acceptance procedure||According to specifications. Acceptance actions have to be performed by Customer during 10 working days (if not agreed otherwise in annex) from date of official handing over of the results by Supplier. After this term a list of shortcomings
should be handed over by Customer to Supplier. Supplier provides bug fixing and a new cycle of acceptance takes place.
|As agreed. No strict criterias provided.||As agreed. No strict criterias provided.|
|Warranty and post delivery support||Warranty period is 3 months. During this term all bugs should be fixed by Supplier for free. Specification is used as a baseline for identifying bugs.Post delivery support should be carried according to separate contract and be paid separately.||No warranty is provided.Post delivery support is provided by same resources in bounds of T&M model.||No warranty is provided.Post delivery support is provided by same resources in bounds of dedicated team.|
|Trial Period||Not provided.||As agreed.||As agreed.|
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