Fixed-price or T&M – responsibility for timely delivery stays with vendor
- Some people think that fixed price contracts are the most sensible way to engage a vendor, while Time & Material (T&M) are open-ended and more risky. Some people think exactly the opposite, citing the often opaque pricing methodology of the Fixed Price contracts and transparency and flexibility of the T&M approach. We disagree with both
- Engaging with a new vendor is always a risk for the client. Committing to a challenging deliverable is always a risk for the vendor. Those risks can't be ignored or passed on to a third party. We live them every day and are paid to beat the odds. Whatever the engagement model, the basic accountability principle is the same: if a vendor does not deliver the scope on time – they don’t get paid in full.