This model is ideally applicable for developing known and well understood solutions with relatively low to medium levels of complexity. This model is well suited for projects that have clear specification documents and sufficient amount of detail so that all assumptions are explicit and all risks are identified clearly.
These projects typically leave little scope for changes and additions during the project execution. As a customer dealing with this model, you would be a knowledgeable person in the business domain and will have an understanding of the software development process to certain extend. This model's success depends on the active cooperation of the client. It assumes that the client will provide relevant feedback and decisions on time. Predictability and assurance is the hallmark of this model.
In this model the client and Minmax agree to a fixed price and timelines for a project at the beginning of a project. This is a popular engagement model which clients feel comfortable dealing with as it gives them a budget and timeline that is fixed. Minmax has perfected this model and is adept at delivering at high quality software on time and within budget.
The client will send a RFP (Request for Proposal) along with as SRS (Software Requirements Specification or Service Requirements Specification) document to Minmax . Minmax along with the client will review the specifications and ensure that all assumptions, details are unambiguous. Minmax will prepare an effort analysis and propose a fixed cost and fixed time frame for the project execution. Minmax will also highlight the scope of change and possible risks during the execution phase.
In case, the client does not have the resource to prepare the SRS, Minmax can help the client in evolving the specifications for the particular project at a reasonable fee. Minmax's business analyst(s) shall discuss the project in detail with the client and prepares a low level specification document laying bare the various elements of the project.
Once the client agrees on the estimated cost and timeline quoted by Minmax, the client and Minmax will enter to an agreement that covers visual aspects, documentation, application design, testing, support period, change management, communication protocols, milestones, timelines and commercial details. The project is executed as per the agreement.
Benefits of Fixed Cost Model
The benefits of this model include the predictability of your costs and schedule, as well as minimal exposure to risk. However, all these are based on your business's ability to prepare the requirements of the project in great detail and to anticipate various factors that may affect the project's success in advance. In this model, the more detailed the preparation, the smoother and faster the execution.