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Published February 24th, 2017 by

Dedicated Team Vs Fixed Price: All You Need To Know About Software Project Contracts

The choice of a contract type is more than a formality. It defines the basic principles of collaboration between you and your development team. Our company adopted two major contract types – Fixed Price and Dedicated Team; the latter can be considered an upgraded version of hourly rate.

These approaches are drastically different, and it’s up to you to see which one works best for the achievement of your business goals. It might be Fixed Price with strict budgets and fixed requirements. It might be Dedicated Team, which aims for regular product delivery, while requirements are under continuous elaboration and changes.

Fixed Price presupposes delivery of a turn-key product. This works best for startup MVPs, smaller projects that need to enter the market.

For that purpose, the product itself must be clearly defined. The essential requirements include UI/UX design (which helps fully understand how the product works), specification (detailed requirements), and acceptance criteria (which describe the behavior of the product).

Once you elaborate this documentation with us, your product will be precisely estimated. Then the price and scope will be approved—and we’ll do the rest!

Watch this video to learn more about this approach and our corresponding processes!

As opposed to Fixed Price, the flexible approach of Dedicated Team is perfect for long-term collaborations and ongoing product development. This is the optimal solution for large projects, such as ERP and CRM systems, provided to enterprise clients.

You will find every subtle nuance in our comprehensive video. Watch it—and see how these approaches help us build robust processes to deliver products with minimal time to market.

As your business grows, your value focus shifts from a Minimum Viable Product to regular delivery, satisfaction of market expectations, and reduction of time to market.

Meanwhile, we provide you with advanced technology expertise, effective communication, processes, and flexibility—all in order to help you achieve your business goals with your ever-evolving product.

Feel free to contact us with any questions!

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