In the current uncertain situation, financing IT projects is more crucial for companies of all sizes than it was in previous years. The overall cost of a project can be significantly influenced by choosing the optimal contract model, but most clients do not pay much attention to this yet. Earlier standards are no longer sufficient in dynamic times. What approaches can be chosen and which one is the most suitable for your project?
Waterfall vs. agile
Before choosing a contract model, it is absolutely essential gambling data china to understand the customer and align with them. Is a deadline key for them? Is money the most important parameter? Can changes in the assignment be expected during implementation?
Mutual understanding is essential for deciding whether to choose a waterfall or agile project delivery model. In general, an agile approach is appropriate when:The choice of project delivery model is key to choosing the best contract model for a given project. If we are talking about delivering a finished cloud product, which is becoming the standard, we can work with three most common contract model variants:
The fixed time and fixed price model is ideal when the customer knows exactly what he wants and therefore has detailed specifications. It is especially suitable for the waterfall delivery model. The biggest disadvantage of the FTFP contract is the low flexibility.
In FTFP, the contractor is responsible for meeting the project what are the benefits of building a brand community? scope, schedule and budget. The fixed price must take into account foreseeable and unforeseen risks, which are also borne by the contractor.
Beware of risk without risk
Undervaluation of bids often occurs due to underestimation of risks by the supplier. These risks can be both internal (on the supplier’s side) and external (on the customer’s side). These include:
too tight timing – risk of slipping,
lack of detailed assignment, analysis,
little experience with a given customer or part of the technology,
the project does not have a high priority for the customer, the customer is late in delivering the cooperation,
the customer has complex processes ,
the required resources are not available – team ,
the project extends into Christmas/summer holidays, different time zone, etc.
The options are mitigation, transfer, avoidance or acceptance of the risk. . However, the thailand data result of this approach may even be a threat to the entire project.
Watch for changes
The second common approach to explaining undervalued deliveries is relying on project change requests, which the supplier subsequently profits from.
Therefore, the customer should have the budget for change requests approved when approving the FTFP model internally, which can be, for example, 20% of the project. It is necessary to pay significant attention to the mentioned synergies, assumptions, out of scope and risks from the supplier.
Body shop
The opposite of the FTFP model is the so-called Bodyshop, which is suitable for completing projects or for internal project implementation, if it is necessary to supplement the capacities of your own team.
In the Bodyshop model contract, it is necessary to monitor more closely that the outputs and their quality meet the expectations of the client. It should also be determine