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Fixed Price vs Time and Materials. How to make the right decision?

Thu, 04 Jul 2019 14:33:25 Z

It’s not always easy to decide. With this article, we want to give you a helping hand! We will point out the characteristics of both models, their advantages and disadvantages, as well as share our practical experience. Read on and let us know if you have any questions!

Fixed Price

In order to start a project in the FP model, a detailed specification and a precise project scope are absolutely necessary. What you get in the contract is a strictly defined price for the entire project. All the negotiations and arrangements are to be made beforehand and therefore the project’s scope is not subject to any changes. Modifying anything about the project may require a whole new estimation and an additional agreement.

It is worth mentioning that you're not left all by yourself after the project in the FP model is completed. An essential part of the contract is the guarantee of support. As usual, it's defined individually, depending on the character of the project. For example, the agreement can state that the development team has 30 days after finishing the project to fix the bugs and after that period they will fix only critical issues for another 90 days. The response time is also set - the team may have e.g. 7 to 10 days to take action after the bug is reported.

This model works best for projects with precise requirements, clear limitations and deadlines. It might be the one for you if you don’t like surprises and you need to stick to a very tight budget. When you want to create a small project, build an MVP or develop a solution with clear and detailed specs, a fixed-price contract will be a good choice.

The advantages:

▶ It's predictable - Defining everything upfront assures that all sides of the contract know the requirements and what it takes to complete them – and of course how much it will cost. Nothing more, nothing less.

▶ It’s calculable - You will get to know the cost of the project ahead of time which makes it easier to control the overall budget of your business. The sum is usually divided into a few payments that are planned regularly and reflect the percentage of the completion of the project.

▶ It’s easy to manage - All is planned in advance and therefore organized. As there’s no possibility to change the project requirements, there’s no need for long discussions about the possible solutions. The scope is clear, so the development process will follow it accordingly.

The risks:

■ No flexibility - When you realize you need to add or remove a certain functionality, it will be impossible to do so, as it's not set in the contract - unless you're ready for additional charges. Being unable to adjust the agreement to the project's development over time might make you feel you pay too much for the thing you don't really want to be completed.

■ No room for improvement of the specs – You can’t fix the flaws of the initial specification on the go. If you come up with an idea how to improve it to create a better final result of your project, you will need to pay extra for it.

Time and Materials

In the T&M model, you’re charged a defined hourly rate, plus the cost of materials. You don’t have to define the detailed scope, set strict deadlines or establish the exact budget for the whole project (although it may be helpful if you need to control your expenses). You can adjust it all on the go, as well as modify the specs and add more features with time.

The process of development is continuous, therefore it allows to report the bugs and fix them immediately. You get a dedicated team for the project that will take care of any issues and support the project constantly.

This type of contract is often praised by software development companies as compatible with the dynamism of the development process and the agile principles. It will be a good choice for complex digital products and long-term projects, when it’s expected that their size or requirements would most likely change.

The advantages:

▶ Flexibility – You’ll always have the opportunity to change some parts of the project on the go to get the ultimate final product, all nice and polished.

▶ Control – You will always know exactly what’s going on at a given moment and at what stage your project is. You can actively take part in the development process, make changes and discuss everything with the team.

▶ Efficiency – T&M model allows both the team and the client to see the precise amount of time needed to complete a certain step or release a feature. It can be really motivating and may help with adjusting the project’s schedule.

The risks:

■ Losing control of the budget – When you don’t set (even just for yourself) any limits, it’s easy to spend more money than you initially planned, adding a new feature here or there. The overall cost of the project may go beyond anything you expected if you don’t track the expenses closely.

■ Deep involvement in the process – You can’t just pay and get the final product. The T&M model requires a lot of interactions between the client and the development team. Make sure you’ll have enough time and energy for it all!

So who’s the winner?

There can be only one answer: IT DEPENDS. Even though we explained the two models as oppositions, it doesn’t have to be this way. They can be two stages of your project that perfectly complement each other. It’s all about the balance between precision and flexibility.

Once you made the decision about the type of contract, remember it’s not set in stone. Although we generally agree that the T&M model works better with agile software development than an FP contract, it really depends on a particular project. And no one said you can’t change the contract type after your project reaches a certain stage! We’ve developed quite a few digital products in the FP model, and after finishing the first version of the app we switched to T&M. It helped us develop some additional features for the product and get the result the client asked for.

Where does the money go?

Clients often prefer the FP model – they feel safer defining everything about the project in advance. Even though it might seem a better solution for your budget, the FP contract can be eventually more expensive than the T&M one - even by 20-25%! How is that?

Sometimes, when you complete a project in the FP model, you end up with a solution that still needs improvements, as the initial scope had flaws and imperfections. Of course, a reliable software development partner can suggest possible advancements before you start the project, but there are things we cannot foresee, and problems that might arise only during the development phase. In the FP model, you can't adjust the project on the go and even though the guaranteed support can fix some bugs, you might still get a digital product that doesn't meet your expectations. If you had chosen the T&M model from the beginning, you could have made all the changes you need, correcting the flaws right away.

With the FP contract, some issues can be solved thanks to the buffer - but again, although it was defined before starting the project, it's an additional cost you could have avoided with the T&M model. The buffer does reduce the risk if anything unplanned occurs, but if "anything unplanned" turns out to be a significant change in the whole project, the only way out of this situation is a completely new contract. As you can see, over the long haul the FP model will still be more expensive than the T&M one.

Another thing that can elevate the total cost of a project on an FP contract is the additional charge for preparing the technical documentation. Some clients confuse it with the project scope, but it's a completely different story. Generally speaking, the project scope is a high-level overview of the project. With technical documentation the name speaks for itself - it's a detailed (!) specification covering all the technical aspects of the project. Preparing technical documentation takes time and requires specialized knowledge. If the client can't provide the development partner with such documentation, it will be necessary to pay extra for it.

Trust is the answer

All the technical details and financial aspects are important. But what really helps in every difficult situation is simply good communication. No matter if it's Fixed Price or Time and Materials, transparency is indispensable for the project to succeed. For us, no technical skills can replace these qualities, as they lay a solid foundation for a truly reliable business partnership. When both sides of the contract trust each other and communicate openly about everything concerning the project, even the hardest issue can be solved.

If you’re still not sure what would be the best decision in your case, feel free to contact us! We know well that each project is a different story and requires an individual approach. We’ll be more than happy to help you and suggest the best solution for your business.

You may be also interested in:

➤ How much does it cost to build a mobile app for your business?
➤ Keep it confidential. Our approach to white label and NDAs
➤ How to create a project roadmap. A step-by-step guide

United States of Development. How to handle long-distance business relationships

Thu, 21 Mar 2019 12:13:47 Z

Time zones are on our side

No, it’s not a typo – we really do think that the difference between the time zones can be beneficial for your project! We tested this strategy in real battle. Time management is crucial in this case, but believe us – it works, and it works well!

Even though we’re based in Poland, we have offices in the USA (Rochester) and Canada (Toronto) which certainly makes communication with our clients easier. However, the development team works mainly from our headquarters in Wrocław, a thriving and innovative city in south-western Poland. It's just 5 hours ahead of New York, 6 hours ahead of Chicago, and 8 hours ahead of San Francisco. In other words, when it’s 3 PM here, in New York it’s 10 AM, in Chicago – 9 AM and 7 AM in California. We’re in the second half of the day, you’ve just started yours. Therefore, we can already let you know about the progress we made on your project during the day, you can ask us questions, or we can just catch up on some news. Later, when you finish your workday (and we’ll be probably asleep), you can message us about any issues you found. We’ll take care of it during your night’s rest, so your next day will already begin with progress! Doesn’t it feel great?

As you can see, this cycle is composed of 3 stages - we work when you're asleep, you work when we’re asleep, and there's also some time for the get-togethers when our workdays overlap. This kind of rhythm enables us to push the project forward even faster and help you get ahead with your goals. The time zone differences can make the work more effective, as one side can benefit from the work done by the other. We call it a 24-hour development cycle. It allows you to catch up with the dynamic requirements of your business and gain competitive advantage.

Frequent, Flexible, Fair

These are our favorite F-words when it comes to communication! Time zones can be tricky if you can’t handle communication properly. That’s why we choose to communicate frequently, be flexible and always fair.

Appropriate frequency might seem simple, but it requires commitment. When creating a project with a US-based client, both sides need to declare the hours of availability – the time when they will be online to discuss important matters together. It's essential to set such hours that suit both sides to make sure the communication will run smoothly. Our afternoon is your morning; therefore, we can arrange calls in the afternoon and update the progress of the project directly. Our project managers working with the US-based clients know the time differences by heart and arrange the project’s daily schedule to get in touch frequently. You'll never have to wait too long for a response from us!

The fixed rules are important, but flexibility is the real key to success. Long-distance business relationships simply impose flexibility and creativity when it comes to efficient communication and project management. For us, being flexible means adjusting the communication and workflow to make the project succeed and meet the client’s needs. We’re agile-driven and we know the rules well, so we can adapt them to different situations. All humans differ, and so do the ways we communicate. The key is to find a common language and define a style that will match both sides. For example - we have our preferred tools we use in communication and in project management, but we can also adjust our methods to fit your preferences. We always try to work out the best solution and treat each project individually.

Frequent communication, flexible management... It wouldn’t be enough without fairness and honesty. Trust is one of our core values and we really mean it. Creating a successful digital product is a journey – you need to choose a companion you’ll trust. There are ups and downs, there are some changes in the established plan, but if we’re moving in the right direction, all will be well. Sometimes moving in the right direction means confronting with difficult things. But when both sides trust each other and know that they’re committed to the project, it makes everything easier. There will always be unexpected challenges and issues with the project. It’s the way we handle them that really matters! That’s why we choose to search for common ground and to be fair and straightforward even about the hard things.

Language barrier? No such thing!

We speak English and we use this language in development and in communication with our clients. End of story! More often we face an issue with tech-language barrier from the client’s side. Don’t worry, we absolutely understand that you may not be familiar with all these tech-related buzzwords and specific terms. That’s why you have us – your guides on the software development journey! We’ll make sure you understand everything behind your product’s successful development. You can ask us anything and we’ll be happy to explain any detail. And if you’re a client who is a tech-savvy, we’ll gladly share our expertise with you!

The sky is NOT the limit

What if there’s a need to meet in person? Sometimes it’s better to discuss something important face to face - or just to get to know the people you trusted your project with. The distance might overwhelm – around 4200 miles to New York, 5200 miles to Seattle and almost 6000 miles to Los Angeles. Fortunately, every year the intercontinental journeys are easier and faster. The direct journey by plane from Poland to New York takes around 9 hours and to California – around 12. And we would be happy to take such a trip for you. Also, if you’d like to visit our office in Wrocław you’re most welcome! Our city is one of the biggest in Poland and you’ll have no problem at all getting here by plane.

The perfect match

Poles and Americans are alike in many ways. One of the things we have in common is work culture. We’re both hard-working nations. We’re practical. We’re committed to what we do and we’re success-driven. We’re also easy-going and communicative in a similar way. Our experience with American clients often showed that our work attitude is quite the same. That’s why we can think along with your team and help you complete your business goals. Because like in every good relationship – we will understand each other perfectly.

Sounds interesting? Let's get in touch! We can turn your ideas into amazing digital products!

You may be also interested in:

➤ Outsourcing / Nearshoring / Offshoring / Remote team - what are the differences?
➤ Outsourcing or in-house: when to choose which approach?
➤ 6 common risks in software development projects – and how to avoid them

Keep calm and be a Nerd. How to nail a job interview at Angry Nerds

Thu, 24 Jan 2019 08:18:53 Z

We prepared a short guide for you on how to get a job at Angry Nerds. But we’re sure the tips will apply to many other companies! Feel free to use them to increase your chances of getting hired in general. Plus, you'll get some idea of what it’s like to work with us!

Ready? Let’s go!

Get in touch

It all starts with a simple Hello! We highly value clear and effective communication, so you can make a good impression from the very first message. Tell us a briefly who you are, attach your CV and – depending on the position you apply for – a link to your GitHub account or any other kind of portfolio. It can also be a blog, if you write one and if it’s relevant to the job post. The first impression we get of you is important, but don’t worry – it's not determinative.

We know the struggles of recruitment from both sides - the employer and the employee - and we never cross out anyone before we really get to know them. Just catch our attention and we’ll definitely consider inviting you over for an interview! You can get in touch with us by e-mail or through a contact form on a recruitment platform where you found the job announcement. Don’t feel intimidated, reach out!

Polish your CV

Your resume is the only idea of you we can get before meeting you in person, so make sure it reflects all the best in you. Take your time to organize the information, prepare a clear layout and check the content a few times at least! Highlight what’s the most important and related to the job you’re applying for.

We’re interested in the schools and courses you finished, but experience is what matters the most to us. A relevant experience, to be precise, so you don’t have to list everything – just concentrate on the work experience you have in IT or a related field. Be honest and don’t make things up – the truth will out anyway.

If you’re still not sure if you should include a certain thing in your resume, ask yourself if the skills you gained at this particular job will be applicable in the new one. If not, you can omit it or just mention it briefly, to avoid any holes in your resume. Maybe you’ve got a friend who works in HR and can give you some advice? Show them your CV – you might get some very useful tips on how to improve it!

Don’t forget to mention your personal interests! Apart from being a devoted programmer, tester or project manager, you surely do something engaging in your free time. Don’t be afraid to tell us about your hobby also during the interview! It can make you stand out from the other candidates. We will probably ask you about it anyway while checking your English language skills.

Finally, remember to look carefully for any kind of errors or typos. If you didn’t notice a typo before sending the resume, it’s alright – it happens to everyone. One or two typos won’t make any difference, but a bunch of them may... It might be perceived as a lack of commitment or poor attention to detail.

Show your best

So it is set – you’ve got a job interview at Angry Nerds office! We’re curious to meet you and get to know your skills. You can increase your chances of getting the job simply by preparing for the interview.

First, take the time to learn something about our company. You can just browse through our website, check the social media profiles and carefully read the job announcement once again. It’ll give you a general idea of what you can expect and what the questions during the interview might be about. And – what's even more important – what questions you can ask us! Prepare one or two in advance and memorize them. We’ll be more than happy to answer them, as it shows you’re really interested in working with us!

Plan to arrive on time for the interview. If anything unexpected happens, make sure you let us know you’ll be late – or early. It’s not a problem as long as you inform us, so we can come up with the right solution. Again, clear communication is vital! What about other things we value? Apart from technical skills, you can impress us with your knowledge of foreign languages (high level of English is a must!) and your general attitude. We like people who are open-minded, flexible, detail-oriented and above all fully committed to their tasks. We value quality and the importance of clean code.

The atmosphere at work is friendly, inspiring and informal – and we look for people who will fit this vibe. We want our teammates to get on well, so apart from testing your technical skills, we’ll look for the Angry Nerd factor in you. So, combining all this - if you’re an easy-going professional ready to face new challenges and a team player who is passionate about coding – it might be a match!

Before you arrive for the interview, make sure you turn off or mute your mobile phone or any other devices. Judging by the looks is definitely not our cup of tea (you should see our office slippers...), so you shouldn’t stress too much over your outfit. Just dress neatly - it'll make a good impression.

We’ll ask you some general questions about your previous work experience and education. Concentrate on the most important things and describe what you learned from them. You can give some details if they demonstrate a certain skill or show how you managed to solve a particular problem.

We guess everyone had a bad job experience at least once, involving some personal issues with a boss or coworkers. Anyway, if the experience is relevant to the job you apply for, tell us about it, but concentrate on what you learned from it professionally - don’t complain or get personal about the relations at the former workplace. Let to go of all your negative emotions and focus on showing us your professional best!

For the technical part, point out your true abilities. If you know a given technology or technique, prove it with your experience. Tell us technical details about a project you worked on and show how you came up with the idea to solve a difficult problem. We might give you an assignment to test your skills. It’s your chance to shine, so use it well! Give us your best, and we’ll make sure you get to work on interesting and challenging projects for clients from all over the world.

Apply now!

We can’t wait to see your application, so don’t make us wait too long! Even if you doubt if your skills are enough or if you fit in, don’t hesitate to message us. We are always looking for skilled and passionate people - both experienced professionals and graduates are welcome to apply. We're a bunch of friendly, open-minded Nerds and we'll do everything to bring out the best in you!

Check our open positions and let's get in touch!

Work remotely and thrive! But where? Top 5 choices

Thu, 08 Nov 2018 13:36:47 Z

Sure, but working remotely won’t make you the most effective worker ever in an instant. There are a few traps set for you on the way to the dreamland of remote work. The major one is definitely choosing the place to work. First of all, you have to realize what you need to do your best at work. Is it pure silence of an empty room or a rush of everyday life around you? Do you prefer working with other people surrounding you or is it too distracting?

Secondly, assess your needs in terms of equipment. There’s no point in working from a desolated place with no Wi-Fi when the internet connection is vital to your tasks! Finally, think about the places you can choose from and pick the ones you simply like. You’ll do much better at work while enjoying yourself than being constantly irritated or upset.

Let’s list a few top choices you can consider when looking for your perfect place to work remotely!

1. Your home

Certainly, you won’t find any venue that offers more comfort, but working from home is one of the most dangerous choices you can make unless you’re really self-disciplined. The main risk at home are all the distractions. You’ll always find something urgent to do and you can end up doing... nothing at all. But you can successfully work from home if you implement a proper strategy. Get dressed – working in pyjamas can hardly be effective. Arrange a working station – a place dedicated solely to your work stuff. Prepare all the equipment you need and create a plan for the day. Don’t forget to add a lunch break! Now you only need to fully commit to your plan and work in the chosen timespan.

2. Cafe

Fresh coffee, fast Wi-Fi, comfy armchair... It’s not so easy to find the dream cafe! Some people will never choose a cafe to work remotely because of all the rush, different sounds or disturbing noises. But for others, it can be exactly what they need to boost their creativity. Remember there are many different cafes! You can choose from the crowded and popular cafeteria or find a quieter one. Have you tried looking for cafes in unusual places? Very often such institutions as museums or other cultural venues have marvelous cafes. Additionally, if you’re in need of inspiration, you can always have a break and visit an exhibition!

3. Co-working space

It’s a great alternative if you’re tired of your usual office. Sometimes a simple change of your surroundings and a difference in the everyday routine can release your creativity and boost effectiveness in a way you didn’t even imagine. The idea of co-working is growing very fast around the world and you can find a neat and friendly venue in all major cities. There are open spaces, conference and individual rooms at your service just round the corner!

4. Library

You haven’t thought of this one, have you? Public libraries have reached a new level of development. Many of them are now modern places with nice working space and comfortable reading rooms. If you need silence, there’s no better choice! Explore the libraries in your city. Surely there are some vintage ones (maybe they will suit you best?) and the brand new ones with some modern equipment and good internet connection. Again – think of what you need and look for it consequently!

5. Park

When you sit in the office in spring or summer you probably dream of going out and taking advantage of the beautiful weather. So if you’re a nature lover and feel the best outdoors, why not trying remote work in a park? All that will surround you there can be the greatest inspiration and mood-booster. But remember – don’t feel too at ease, you’re at work, not on vacation! Remote work in a park has also some clear disadvantages. Unless you have your own source of internet connection, it’s unlikely to find a good Wi-Fi.

There’s no such thing as a perfect place that suits everyone. We all have different needs and tasks to do, so there’s always more than one good solution. The key to benefit from the possibility to work remotely is to choose the environment that will help us thrive. If you have ideas or personal experience in the matter, share it with us in the comments!