‘Fixed bid proposal executed for a Government project had a schedule overrun of 16 months – this is mainly due to dynamic change in requirements. On top of this, changes ran over 50% of the initial estimate’
The risk associated with the fix bid model is reduced when all proposals follow the waterfall development model and milestone deliverables are monitored. The cost of change is high at the implementation stage compared to when it is found at the requirement stage. Hence it is always better from the customer end too not to delay in signing off things on time or providing feedback /clarifications to the vendor.
Listed down the important milestones of a successful fixed bid engagement model:
- Requirement Analysis: This can be further sub divided in to User Requirement specifications, System Requirement specifications; the system requirement specifications should include the Non Functional requirements and Usability requirements as well
- Design: includes high level architecture, database design, low level design, deployment architecture and UI prototype
- Coding, preparation of functional and non-functional test cases
- Verification and Validation, integration, functional/ system/performance testing
- Deployment and Go-live, documentation of the project; User /Technical manuals
With each milestone being monitored, risk is reduced and life will be easier for both the customer and vendor.
Every customer expects the vendor to handle fixed price projects differently, so I’d love to hear what your strategies are when working fixed price. Mail me at [email protected]
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