Which payment plan is better for your software development project?

Which payment plan is better for your software development project?


Once we’ve discussed the technical details of
your project, it’s time to define your budget. Most projects use one of two payment
plans: fixed price or hourly rate. If you select our fixed-price payment plan, you’ll
pay one price for a complete end product. Before signing a fixed-price contract, we
require a detailed, freestanding technical specification. Once we have
assessed your requirements, we can provide you with accurate project costs
and deadlines. We can then determine the required size and expertise of the team
and divide your project into several stages. On an hourly rate payment plan you
pay for the hours actually worked. Contractual conditions are not as strict,
so an approximate written description of your requirements, oral instructions or a
dictaphone recording is enough. We can provide you with a quote for your
project, but any costs will be approximate due to the absence of a detailed
requirements specification. This type of payment plan is ideal if you want to
make a quick start, especially if you need to rewrite third party code. Putting
an accurate price on correcting a couple of dozen small (or seemingly minor) errors
actually means analysing a range of software components, and this can take up
to 80% of the time spent doing the task. That’s why we use our hourly rate plan
to rework software and correct third-party errors. Which plan is right for you? 1. Setting a fixed price is convenient
when you have a clear task in the form of a requirements specification, which is not
likely to change later in the project. If your requirements are not clearly
defined beforehand and your specification is prone to change during
the development process, an hourly rate plan may prove more efficient. 2. When
using a fixed-price plan, any change to the requirements specification must be
accompanied by a supplementary agreement, and this means more paperwork: a task
description and cost, signing of an additional agreement, document exchange,
billing and down payment, and the allocation of an available specialist.
All of these steps must be taken in each instance before our team can start work
on the new task. Projects that involve redevelopment and maintenance typically
consist of a multitude of small tasks and that’s why using a fixed price plan
can pull in and distract additional staff on both sides. 3. An hourly rate agreement can be signed
once in the form of a framework contract that provides for ongoing cooperation on
several projects and covers any task types, including: design, testing,
development and even systems administration. Opt for a fixed price
plan if your company has a complex budget-formation procedure. In other
cases, we recommend an hourly rate plan because it affords you the freedom to
implement any ideas that may arise during the course of the project. Unlike the hourly rate plan, fixed price
payment usually costs more because it incorporates the uncertainty coefficient,
which provides the contractor with an additional level of insurance, in case
the volume of work has been underestimated. How is fixed payment made?
35% is made as a down payment and another 35% is transferred upon
receipt of a fully-operational beta-version of your product. The remaining sum is due
once any errors detected during product acceptance have been corrected and when
you are fully satisfied with the end result. How is time-rate payment conducted?
If you would like us to permanently assign a specialist or a team of experts to
your project, we require a down payment equal to their monthly salary. Following
this initial down payment, you will be invoiced at the beginning of each month
for the hours worked during the previous month. You can try our hourly rate plan by
purchasing an initial 40 hours of work. However, we cannot assign a permanent
team to your project until the full down payment has been made. Why is a down payment required? Software
development is a complex and highly intellectual process. As a client, you
need to be guaranteed a quality end product that is delivered on time and, as
a contractor, we need to be certain of your solvency. Managing a fixed-price project. When you
sign a fixed-price agreement, we create a payment schedule and a milestone plan
for project work. The step-by-step completion of these milestones and the
payments attached to them ensures that work progresses according
to plan. Managing an hourly-rate project. Our goal is to create high quality
software products. That’s why we adhere to the following principles:
Firstly, everyone involved in our development team must enter written
records of their tasks, instructions and answers in the project management system. Secondly, our specialists keep records of
their working time, which show exactly how many hours and minutes have been
spent on any given task. This information is available to you anytime. Thirdly, we
provide live in-company monitoring of internet traffic, screenshots and active
programs. We facilitate all means of communication, enabling you to personally manage any
specialist engaged in work on your project. Choose your preferred payment plan and
we’ll do the rest!

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