As our experience shows:
- Fix Price model in general is 2-2,5 more expensive than Time & Material.
- With T&M model, everyone is satisfied with results and execution time. In case of Fix Price, it is very rare to meet someone satisfied at least with something.
- A process always goes faster and with more dynamics in T&M.
- Most clients are afraid of T&M because of its uncertainty as they think. Even having agreed, they still don’t believe until the first result comes and then, continue working only using this model.
- In the Fix Price model, a potential developer has experience. He will count all risks, but a client tries to discount as much as possible. As the result see above point 2.
- In T&M, clients and developers constantly interact with each other, which always has a positive effect on the work.
- Flexibility in the decision making and «on-fly» changes are possible only in T&M.
- An attempt to start cooperation in the Fix Price model often bumps in loads of paperwork and approvals from both sides (everyone wants to account for all risks, get discounts, etc.), but in T&M, one can start basically right away.