Fixed Price

Fixed price is a standard cooperation model and contract type, the best solution for companies looking to operate within a prespecified budget.

BY COOPERATION MODEL

Fixed Price

Project Type
Successful Cooperation
Case Study
Advantages and Risks
Contact

What is a Fixed Price contract?

This contract option is suitable for projects with a predetermined scope and overall budget.

Knowing how much the client intends to spend on the project, Hicron consultants can prepare estimates of the workload of particular tasks and present them to the client. This allows the entire course of the project to be planned in advance and carried out in a predictable manner.

The Fixed Price option may be used for both SAP implementation and development, projects involving modern technologies (Digital Software Services), as well as maintenance contracts.

Maintenance contracts also include Service Level Agreements, stipulating minimum response times for Hicron to respond to customer requests.

Successful cooperation

Although the Fixed Price option assumes that the project has a predefined budget and scope, this does not mean that we require our clients to have a ready-made implementation plan before the start of our cooperation! On the other hand we are aware of the risks in this cooperation models and this is why our consultants will offer assistance with both making estimates and planning the scope of work.

Case study

Fixed-price project at Pronar

The main assumption of the SAP Dealer Portal implementation was to optimize the sales process for spare parts, integrate products with a spare parts catalog, ensure better control of warehouse availability and product prices, and accelerate production processes. Hicron team also prepared the implementation of a proprietary SAP component – Product Catalog, designed to manage spare parts for products and optimize other dealership service processes.

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Cooperation with Hicron went very smoothly, and all stages of implementation took place on time. The skills and experience of Hicron consultants cannot be overestimated – the involvement of our employees, who spent a lot of time working on the concept and data preparation, was also very important.

Piotr Kazberuk

Project coordinator at Pronar

When is this option worth choosing?

Fixed Price contracts are often seen by clients as a kind of protection against a situation in which the project costs grow in an uncontrollable manner. In a Fixed Price contract, the budget limit is established at the very beginning, which enables proper planning.

Due to their nature, any changes to the original assumptions of the contract (especially to the planned scope of the work) cause complications. For example, they may require the established budget to be modified – which usually means its increase. This is why we encourage our clients to take the time to consult with us before the work begins. This way we can optimally adjust the assumptions to the actual requirements and needs of the company.

Therefore, Fixed Price contracts are most suitable for projects with a precisely defined scope.

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Would you like to learn more about our offer?

To find out more about the terms and conditions of Fixed Price contracts or learn more about Hicron’s offer, please send us your contact details and questions. Our experts will clear all your doubts.