Fixed Bid Projects

Fixed Bid projects follow the structured development model detailed in our "Project Lifecycle." The basis behind doing development on this model is that the time spent upfront on a project in the requirements, specification, and design phases will yield a complete understanding of the project and setup a development phase with less problems and bugs due to errors in design. Ultimately the goal is to spend more time upfront, and work down the correct path rather than discovering later in the project lifecycle and having to redevelop parts of the system to be what is actually needed.

A fixed bid is based on the requirement, specification, and sometimes design of a project which is done upfront. Typically, these pieces in themselves are paid exercises to complete, but account for only a fraction of the total project cost. Because time is spent upfront on the planning and design of a system, the remaining costs for the project (development, support, and warranty) can be properly determined upfront, before any code is actually written.

Why Work Fixed Bid? Predictability.

Doing work fixed bid allows the cost and schedule of the project to be predicted upfront. As the solution is being developed, you have little freedom to make changes in direction or adjustments to the requirements of the project, so an accurate vision and detailed review of the requirements and specification are important. Still some changes can be made through change orders to project to account for unforeseen changes or requirements. In the end hourly projects and fixed-bid projects cost about the same but fixed bid projects have a defined plan with specific milestone deliveries. We find fixed bid projects yield better formal documentation and conform more to budgetary planning requirements of companies.