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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.

Sonuçlar

  • 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

Sık sorulanlar

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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fixed price vs time and materials