Almost every client asks us for a fixed price. It’s a fair request: budgets are approved as numbers, and nobody wants an open cheque. But a fixed price only protects you when the scope can be fixed too.
When fixed price works
Fixed price is the right choice when the work is well understood and unlikely to change. Discovery, an architecture review, a cost review, or a clearly defined phase such as a pilot in ten stores. We offer fixed prices for all of these.
When it doesn’t
For a year-long build, the scope will change, because you’ll learn things. Under a fixed price, every change becomes a negotiation, and the supplier has every reason to deliver the letter of the contract rather than what you need. Suppliers also add a risk margin, often 20 to 30%, which you pay whether or not the risk happens.
How we make time and materials safe
- A fixed-price discovery first, so the estimate is based on evidence.
- An estimate for each slice of work, agreed before it starts.
- Spend against estimate in every fortnightly report, in dirhams, not story points.
- A monthly cap, if you want one, that we can’t exceed without your written approval.
- Thirty days’ notice to stop, at any point, with everything handed over.
Over the last two years our slice estimates have landed within 10% of actual spend 87% of the time.
What we usually suggest
Start with a fixed-price discovery. At the end you’ll have a plan, an estimate and enough evidence to decide whether the next phase should be fixed scope or time and materials. Many clients choose a mix: fixed price for the pilot, time and materials for the rollout.
If you’d like to see a sample fortnightly report, ask us. We’re happy to share one with the client details removed.
