First, give conclusions that can be used for decision-making
The cooperation model should match the certainty of demand. Fixed gross prices are suitable for the relatively clear stages of input, output, interface, data and acceptance standards, and suppliers will account for risk in quotations; if demand is still being explored, suppliers are required to fix prices and time, followed by digesting uncertainty by compressed quality, frequent disputes, or large change orders.
What conditions need to be identified before judgement is made?
The same question may have different answers under different business, data and project phases. It is suggested that the following conditions be checked and that the common findings on the web be incorporated into their own projects.
Suggested order of advance
First, we'll be clear about the target and the border.
Assessment certainty by diagnostic, prototype, initial and extension phase of the project.
Validation Key Dependence
Fixed milestones for the establishment of partial engagements and maximum time and material limits for the exploration segment.
Development of assessable outcomes
:: Harmonization of weekly reports, working hours, results, risks and changes records to ensure transparency of inputs.
Make sure you decide the next step with the real results.
The speed and quality of delivery are repeated at each stage, which determines the modalities for the next phase of cooperation.
How do you understand it in the actual business?
The quality of the code and the manner of deployment are not clear. Direct fixed total prices force both parties to speculate about risks; it is more logical to complete a code diagnosis at a fixed cost, then to use a milestone offer for a clear repair range, and to use monthly teams for ongoing business overlaps.
The easiest pit to step on.
It's a constant total price that means that demand can be changed indefinitely.
Review by person-months of cooperation without priority, phase objectives and results
Comparisons only for person-months, not for team composition and effective outputs
How should we end up receiving and confirming?
Either model should agree on team roles, transparency of work, deliverables, quality requirements, and the way of termination. A good model of cooperation does not push the full risk to one side, but rather allows for commitments to the known range, verification of unknown matters, and record of changes.
When preparing to communicate with suppliers or internal teams, it is recommended that current processes, representative samples, existing systems, planning time and budget levels be brought. First, the unknown items are clearly marked, and then the decision is made to use diagnostics, PoC, fixed-range projects or ongoing research and development, which is usually more reliable than a direct demand for a price and duration without borders.