Fixed price project & hourly contract. Which one to choose?

Fixed  Price Projects

For example, you work with Magento and want to find Magento Development Company to fits all your needs. The question of price is one of the most important. Now we will talk about our price politics.
We prefer to work at a fixed price with new projects or with new parts of the project. For example, these kinds of tasks are convenient for a fixed price projects:

  • The development of the store, when the scope of tasks is clarified and discussed;
  • The development of the theme from scratch;
  • The development of the module from scratch;
  • Improvements of some certain part of the project (for example, an upgrade of the module).

These types of work will allow our specialist to make an estimation properly predicting the timeline. Choosing this version, you know the price and timeline of the task in advance.

Time & Material (hourly contracts)

For the following list of tasks, we prefer to work with the T&M contract (hourly paid):

  • Edit / Bugfix after your previous programmers;
  • Fixing development flaws;
  • Tasks, where you do not fully know if you are satisfied with the result, and perhaps change the description of the problem;
  • Daily technical Project support when you need to fix problems “on the fly”;
  • Tasks, where you want to delegate our team the design of any parts of the project. For example, you do not have a mobile design and you want us to make a mobile presentation of the topic according to the best practices.

According to Wikipedia Article: 

“Time and Materials is generally used in projects in which it is not possible to accurately estimate the size of the project, or when it is expected that the project requirements would most likely change.”

We help you estimate the budget for hourly contracts?

Before starting a work, we give you a rough estimation of the group task or for each task separately. Usually, this estimation is done with a margin, we add risks that we may encounter working with parts of your project that we do not know.

However, you still want to work with fixed price

We understand your desire to have a fixed early discussed budget. Nevertheless, there are a number of nuances that do not allow us to work on such a model. Here are the reasons:

  • We have not worked on your project before;
  • We do not know how many previous developers followed the coding standards and how competent they were;
  • We do not know all settings of your project;
  • Some of the information will have to be specified during the work, and we do not know how long this will take.

If you still want to work on a fixed price model and nothing else:

In this case, we can offer you – a full Magento Website Audit audit of all your tasks for a paid time. Depending on the complexity of the project and the number of tasks, this may take a different time. The estimation is determined personally for each project and task list. If you choose this option, we can offer you two estimation options:

  1. Briefly, we will spend time studying your problems and what has been done or broken before us. After that, we confirm our estimation for a fixed price.
  2. We will make an estimation for a fixed price + we will create a brief instruction about what needs to be done to ensure that your tasks have been completed. This version of the estimation is more laborious, however, in this case you will get a short description of the instructions that you can give to any programmer.
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Valentyn Kubrak

Valentyn KubrakChief Operating Officer

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