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Fixed vs Time and Material (T&M) Projects

If you have an IT initiative and you have heard dreaded stories, then this post could provide you some insight to how you could consider going about your project.

This is always a big decision. Especially if this is the first time you are engaging a vendor for your IT needs. Below is an infographic of pros and cons of both the models. (Do take a couple of minutes on this)


Now that you have a fair idea, some thumb rules to consider are:

Budget + Time => Fixed


Unclear requirements + Flexible Budget + Flexible Time => T&M


Unclear Requirements + Tight Budget + Fixed Time => Don't even go there.


In reality, things are never clear. It is probably a good idea would be to have an initial meeting with the tech folks to figure out the grey areas and iron them out. Also in the contracts make an allowance for about 5% change.


We at Mezzlink specialise in Fixed budget engagements, because it is in everybody’s interest to get things done Fast. Why? Because ...

  • There is no incentive to prolong project as net billable remains the same.

  • Since we need it done fast we use very experienced people to get the Job done. Junior resources will take more time.

  • Keep things simple and lean. It is not in our interest to build additional good-to-have functionality or like in common parlance "up sell".

  • And finally because we need a clear picture we ideate enough with you to ensure you have thought through everything.

Hope this was informative ans will help you in your tech endeavour.

If you have more questions, please do get in touch with us. we are always eager to share our experience.



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