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Fixed price vs time and materials: who carries the risk
Fixed price transfers risk to the supplier — who prices it in. Time and materials keeps it with you and rewards discovery. Neither is honest without a clear scope.
Resultaten
- Fixed price needs a documented specification to be meaningful
- Time and materials needs a trusted supplier and an engaged product owner
- Capped time and materials is a workable middle ground
- Change control matters more than the model chosen
- Discovery is best paid separately under either model
FAQ
Veelgestelde vragen
Which do you recommend?+
Fixed price when scope is knowable, capacity-based when it is genuinely exploratory. We say which before quoting.
How are changes handled?+
A written change with impact on cost and date, approved before work starts.
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