A SET-PRICE MODEL
Our cost calculations when negotiating a contract are based on an average hourly payment for an eight-hour workday and a five-day workweek.
In case our customers already have a specification of a product, we will study it and send back a set-price offer,based on:
- The number of specialists, which are going to work on the project.
- Length of work.
- Complexity of the task involved.
In some cases when the customer does not feel confident to put together a specification by expressing its requirement our experienced specialists will give a hand. They will probably ask many questions and starve for details in order to elaborate a specification corresponding and give a realistic estimate.
When working on a set-price model we usually work with the following payment schedule:
- An advance payment – a certain percentage of the agreed price after the specification has been approved by both sides.
- An agreed percentage of the price after the project has been completed on demo servers or demo environment.
- The ending balance of the price - after the project has been launched in real environment.
CONTRACTS ON A TIME & MATERIAL BASIS
Under this model, the prices of our services are usually lower. In general, we work on a time & material basis after establishing a long-term relationship with our customers, or long-term projects.
It is important to know that the same model is used when:
- The information provided by customer is not sufficient to prepare and offer a set-price quote.
- The project will use the SCRUM model, and there will be constant changes of requirements “on the fly”.
- The project management is handled by customer’s PM and SBND Technologies services are provided to speed up the development by adding engineers to the existing customer’s development team.