Project Management Stack Exchange
Project Management Stack Exchange

Questions tagged [fixed-price]

For questions about managing projects, that have fixed-price contracts within.

Description

Definition from PMBoK (5th Edition):

Fixed-price contract type involves setting a fixed total price for a defined product, service, or result to be provided. Fixed-price contracts may also incorporate financial incentives for achieving or exceeding selected project objectives, such as schedule delivery dates, cost and technical performance, or anything that can be quantified and subsequently measured. Sellers under fixed-price contracts are legally obligated to complete such contracts, with possible financial damages if they do not. Under the fixed-price arrangement, buyers need to precisely specify the product or services being procured. Changes in scope may be accommodated, but generally with an increase in contract price.

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See also

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How to apply Scrum in fixed date, fixed budget project?

Considering that we work on a project with fixed deadlines and fixed budget and we use Scrum: what are best practices we should use to make this setup successful? Since Scrum wasn't directly designed to deal with such projects, what changes we…
Jayantha Lal Sirisena
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At whose expense is the stage of preparing a contract performed?

Let's suppose a customer needs a software product and comes to a software development vendor. The customer describes the product and maybe even provides business requirements documentation (BRD). Then the customer asks when the product will be done…
Daniel
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PM techniques/tools for fixed-price 6 month client project

I am looking for project management techniques and tools to help with the following situation. (P.S. I know this question is technically off-topic but I felt Revisiting Tool Recommendation Questions expressed a degree of leeway. I am new to project…
Adrian Smith
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How to leverage Agile development benefits in a fixed-cost project?

I recently joined a company that has started moving towards "more agile" development. I've already been product owner for an internal software project and that worked reasonably well as far as I can tell (I'm also new the role and not a…
BootstrapBill
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What will be the standard increase of price from a Time and Material to a Fixed Price?

Knowing there are pros and cons for each type of procurement contracts. I am trying to find the real price % increase from a time and material contract with specific scope to a fixed price. As an example. Let's say you ask your vendor to prepare a…
Geo
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How to manage consulting resources to deliver ahead of delivery dates?

I am a PM for a large matrix enterprise organization that has internal development resources as well as contracted consulting groups. Depending on the project we may need to engage an application team that is one of the consultant groups. Each…
Shawn
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What are Acceptable SLoC Rates?

This is not a question regarding the quality of the SLoC metric. I accept it as a limited, inaccurate, or even poor metric. That said, I am looking for data that indicates what reasonable rates for software development given SLoC. Of particular…
Chris
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The Case for Hourly Estimates

My boss has always operated on fixed pricing projects; where we rarely see a profit on. I'm on board with selling our clients hourly rates on large projects. We have yet to get a client willing to buy our services on an hourly basis. What are some…
chrisjlee
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Conversion from complexity estimation to actual costs

We do Scrum - therefore we do not estimate hours or workdays, but estimate complexity (Story Points). As our customers mostly want to know what a feature might cost, we somehow have to do a conversion from complexity to money. In a big project with…
ppasler
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Change management in small fixed-price projects

I guess it's not common in small projects to develop a change management plan, so... What do managers of small fixed-price projects do when a customer demands a change? How is it resolved whether the change is compatible with original requirements…
Daniel
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Estimating Fixed Price Project Cost Payments via Monthly Milestones

I have spent the last few days searching for an answer on how to use MS Project (2010 in my case) to estimate a project's cost via milestones that are split along a long program (2.5 years). The client wants to pay us via monthly milestones on a…
ProjectNovice
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How a software development contract is concluded?

Let's suppose a customer wants to create a software product and there is a software development company that is able to develop this product. They need to create a contract. But both sides has their own concerns: a customer often wants a…
Daniel
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Estimating and Project budgets

I'd be interested to hear how you manage dealing with project budgets when having to provide a fixed cost up front for the customer ahead of starting the work? For context, and without giving too much away, I work as a PM developing online…
Drew
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FixedPrice but customer wants all risks are handled by their side

Here is an interesting situation we have been put in. We developed a proposal that includes deliverables, work packages and their estimates, risks etc. Also we planned some contingency for risky situations , like API integration may take more time…
Ruslan
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When does a software vendor (fixed-price projects) usually get paid?

What is a usual approach to fixed-price software project payment? Does a vendor get the money after the result of the project is delivered to a customer? Or is the payment made upfront? Or a mixed approach?
Daniel
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