Fixed Price

Fixed Price projects are less common nowadays. They suit contexts where technology and requirements are clearly defined upfront and not likely to change, and where the client is not willing to share risks with OSB. There is a tight control on scope and budget to ensure profitability.

Dimension	Description / Impact
Control of the activities	In this mode, OSB is fully managing the resources and activities, including tasks allocation and priorities. An OSB Project Manager (a.k.a. Customer Success Manager or CSM) is allocated to the project.
Pricing Model	Based on the detailed effort estimates, resources costs and other financial aspects (such as software licenses, travel expenses, effort contingency, potential warranty, etc...) the project price is calculated and negotiated with the client. Once it has been approved, the project budget is fixed and OSB will only be paid the contracted amount, regardless of the actual effort spent - unless change requests are negotiated and approved.
Budget Management	Prior to the start of the engagement, the customer requirements are analyzed, the required team composition defined, a detailed tasks breakdown and project plan established, and the effort per resource / profile carefully estimated. The budget is then calculated (see above) and validated with the client. Along project execution, actual efforts spendings + remaining estimated efforts are monitored to measure project health and profitability.
Scope Management	Since the budget is fixed, it is critical to ensure that any deviation (functional, technical or other) from the initial scope is immediately raised. The impact in terms of efforts and costs has to be estimated and submitted to the client, who will either accept the change request (with additional budget approved for execution), or decline it. Only approved Change Requests will be added to the scope to be delivered.
Timeframe	A detailed planning is established and negotiated with the client at the beginning of the project, depending on resources allocation and availabilities (on both sides). A typical duration for such engagements is ranging from a few weeks to a few months.
Reporting	A regular project status report of team achievements, scope delivered (incl. change requests submitted), decisions taken and project risks register is provided to the client. There are NO timesheets submitted to the client.
Invoicing	The payment milestones are negotiated at the beginning of the project, and are typically linked to key project milestones/dates (e.g. end of design, end of development, delivery for UAT, go to PROD, end of Hypercare...). They are formally triggered by the PM/CSM when the milestone is reached and validated by the client.