Fixed cost Quotes…the other side
A fixed cost definition can be broadly termed as below (as any standard IT Person can perceive):
Should it bid at modest rates and go over budget, the Vendor / Developer will eat the cost, – thus, stating a risk for Vendor / Developer.
On the contrary, in case it is hard to predict in terms of time and creative effort, the development process needs control and improvement upon each iteration, and should allow for cancellation at virtually any stage thereof in order for the customer not to overpay, – thus, stating a risk for the customer.
There are quiet a few cases where in a “Fixed cost Quote” term is misinterpreted by the the clients, in the sense they only see one side of the coin, the other side of the coin as mentioned above has also to be considered without much arguments. A single sided coin is a “Fake” coin and cannot be used.
My other thoughts on Fixed cost quote:
June 5, 2007
· 
Rahul Desai · 
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Posted in: Project Management, Software Engineering
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