How we work

Our Cooperation Models

Fixed Price Time and Material Dedicated Team
General Description Also called “money for result”. A fixed price model defines the service to be provided very specifically, and then sets a single price for the project, regardless of how much time and expense the supplier’s company incurs. Also called “money for time & resources spent”. Supplier provides specialists of certain professional level and the  customer pays only for time and resources spent on the project. In case of partial workload, minimum quota per month is set up and terms of specialists’ availability influence on rates. Supplier will build a team of resources according to customer project requirements. Payment is made according to allocated team time. The customer is responsible for providing adequate workload to keep dedicated team busy. Supplier provides
estimates for planned work, but these estimates are used for planning, not for price estimation or invoicing.
When is the model used? Exact requirements, detailed specification, strict deadlines for delivery. Customer clearly knows what he wants to get in the end at the end of the development period. Ideal for projects with fixed requirements, budgets and strict deadlines. No complete vision of the final product and no exact terms of delivery. Possibility for creation of work team with specified workload. Paid min. quota (for example 50% of usual month workload). Ideal for Agile development methodologies. Ideal for projects developing MVPs, prototypes or for teams that are part of remote customer teams. No complete vision of the final product and no exact terms of delivery. Need of long-term expertise focus in a fixed team. Assumed 100% of workload, paid downtime. Ideal for Agile development methodologies. Ideal for regular product development & support.
Customer advantages Advantages:

  • Precise cost control. Price is fixed and can’t change if requirements dоn’t.
  • Delivery time fixed. Project plan known
  • Warranty
  • Minimum risks
Advantages:

  • Possibility to start with partially defined requirements
  • Medium hourly rate
  • Flexibility in work volumes
Advantages:

  • Fixed teams with focus on one customer
  • Lowest hourly rate among all models
  • Full control & full availability of the team
  • Collected expertise
Requirements (for Customer) Exact specification. All changes to specification are estimated and planned separately Partial requirements. Adequate workload for team (according to minimum quota) Adequate workload for team
Requirements (for Supplier) Exact estimation and Project Plan. Meeting the deadlines.Adequate Quality of Service Rough estimation for planning. Adequate Quality of Service Rough estimation for planning. Adequate Quality of Service
How is the work scope defined? Scope is defined in specification and is implemented in the project plan. Upon agreement. Usually work is defined in form of short user stories that might be made more precise during implementation. Approximate Project Plan and estimation can be provided as orientation. Upon agreement. Can be defined in approximate Project Plan.
How are work costs defined? Cost of the project is based on estimation and is a part of the commercial offer.Costs are based on estimation model, personal rates and risks. Daily rates for different specialists are agreed upfront. At the end of each month, supplier provides customer with the invoice based on amount of time and resources expended. Weekly reports on spent time are sent to customer. Monthly rates for different specialists are agreed upfront. Payment is made upfront for the whole month of the team allocation. Paid downtime. Weekly reports on spent time are sent to customer.
Acceptance procedure According to specifications. Acceptance actions have to be performed by the customer within 10 working days (if not agreed otherwise in annex) from the date of official handing over of the results by supplier. During this period a list of shortcomings
should be handed over by customer to supplier. Supplier provides bug fixing and a new cycle of acceptance takes place.
As agreed. No strict criteria is provided. As agreed. No strict criteria provided.
Warranty and post delivery support Warranty period is 3 months. During this period, all bugs should be fixed by supplier for free. Specification is used as a baseline for identifying bugs. Post delivery support should be carried according to a separate contract and is to be paid separately. No warranty is provided.Post delivery support is provided by the same resources with in the bounds of T&M model. No warranty is provided.Post delivery support is provided by the same resources within the bounds of dedicated team.
Trial Period Not provided. As agreed. As agreed.