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The second disadvantage of this approach is that usually anIT company using the Fixed price approach will estimate the time consumption oftasks in such a way that, even in the pessimistic variant, it will not payextra for the project . As a result, we will be financing a safety buffer thatresults from the difficulty of accurately estimating how long certain taskswill take. Example of valuation of a 3-month project for the development of anorder management platform in the form of Fixed price: The project will take500h x PLN 100/h, which translates into PLN 50,000.
When to choose the Fixed price model? We have Da Bomb Hot Sauce greatconfidence that our order will only change minimally. We need to know the finalcost of developing the software. "Range" A variation of Fixed priceis the range approach, i.e. the estimation of each project subtask in the formof a range from-to or in 3 variants (optimistic, realistic and pessimistic).Advantages and disadvantages of "Forks" Settlement in the form of"Bands" means that we get a more reliable valuation without safetybuffers . The pessimistic variant assumes safety buffers.

If the work goes smoothly, the cost of the project may actuallybe lower with a rigid Fixed price approach. The fork approach also allows us tochoose the complexity of the task/module at a later time , when we will havemore data. At the beginning, we can assume that a given functionality will takefrom 16 to 40 hours. When we get closer to completing this task, we will beable to decide what settlement option we will need depending on how much budgetwe have left. With a range approach, the total amount of the pessimisticvariant may be discouraging , but in practice we oscillate around the realisticamount with a small deviation to one side or the other.
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