Project based
Project based model is ideal when the client requires work that can be provided with very quick turnaround. Likewise, a client may prefer a fixed price contract because it is easier to set a budget for such projects. This model does not suit well with updating and extending requirements on-the-fly due to the estimation made. In the case it is hard to clarify all services and amount of work needed to finish the project in time then there is a certain risk for the client and it is desirable to choose either On-Demand or Dedicated Team Model. Project Based model for the same reasons is used only for technologies and platforms that are within the field of our expertise. With this model we invoice after we deliver results but for the projects with development time-span longer then a month we may request make payments at specific project's check points with provisioning deliverable versions.
Pros
- Fixed budget: customer has predictability of his costs.
- Well-defined time limits.
- No need for project management on the customer side.
Cons
- Requirements must be defined before the project starts.
- Longer preparation phase.
- Project Scope is fixed.
- Out of scope change requests are paid over budget.
