Fix price
Based on "the waterfall model", using in software developing, when all requirements are clearly formulated and do not change until the completion of all work on the project
Time and materials
Based on "time and materials model", when requirements can be developed and changed in the course of project implementation, and labor costs are paid based on the number of people employed on the project and the time spent on producing the functionality of the developed product
An example of an algorithm for working on a project, implemented with the use of "Time and materials model" pricing:
- 1
Identification of terms, prices, as well as general requirements for the system, specification of requirements, generation of the initial prototype and the list of detailed requirements of the system version V (where V = O)
- 2
Joint planning of implementation of priority requirements from the general list for the V-version system
- 3
A two-week (or more) implementation of a version V system with the requirements approved in step 2 and send it to the customer
- 4
Correction of requirements (if necessary), reorganization of the list of detailed requirements to the system of the new version V (where V = V + 1)
- 5
If the list of requirements is not empty, go back to Step 2, if the list is empty, - we release the final version of the system and support it for the agreed time
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