How to Engage Clients
There is no more important decision than deciding the best way for you and a potential client to start working together. Proper planning with the correct billing model will save everyone time and aggravation in the long run
Time & Material
Time & Material model is based on actual time invested into the development and cost of materials and equipment usage. This model is flexible for clients that have changing needs.
HOW DOES IT WORK?
- When we get a general overview of the project, the team will get together to start working on a solution. No detailed specification is needed to start the project. You will be charged depending on the project requirements as they are revealed during work. Each feature can be priced individual which also helps with budgets.
WHEN IS IT BEST USED?
- There are no detailed project documentation or it has insufficient level of details and you need flexibility.
- Project specifications and requirement are constantly evolving and changing.
- You have a long-term relationship.
- The deadline cant be clearly defined.
- Adding features ad-hoc to an existing application.
BUSINESS BENEFITS
- Time and Material contract cost may turn out to be less than in a fixed bid. Depending on how the work flows. You may get into the project and decide it is not viable or a much smaller MVP is needed.
- It is easy to change priorities of specific features and add new ones.
- Deadline can be easily changed if needed based on cashflow, or availability
- Reduce the risk of unmet expectations — the whole process is transparent and clear, payment occurs when the it is developed.
Fixed Price
The project is built according to the cost and time estimates based on the project details provided by the client. All payments within this model are made on pre-defined milestones. The project specifications are frozen, the budget is fixed, and deadline are set.
HOW DOES IT WORK?
- Having received detailed project specifications we study them, provide an estimate and contract is signed, no additional functionality can be added to the scope of work without a cost re-estimation. Its set in stone, unless a change order if filed.
WHEN IS IT BEST USED?
- Project specifications are clearly defined and will not be altered before the release.
- Technical documentation is properly planned and available. This documentation can use
- There are clear deadlines and/or a limited budget.
BUSINESS BENEFITS
- Risk are minimized, the web solution is built exactly according ti the specifications provided.
- No extra expenses as the price cannot be changed if the specifications stay the same.
- Elimination of potential misunderstanding and disagreement with the software developer.
So there you have it. If you liked this post, please follow me on the web https://buildingbettersoftware.io/contact/
