First, let’s pin down what “fixed bid” or “fixed price” actually means.
It’s not just that the customer demands to know as precisely as possible how much they will have to pay for the project (which, on the surface, is not an unreasonable request). Usually, the customer will also want to fix what it is that they are going to get—the scope. Often, the customer is interested in getting the deliverable by a certain date, thereby fixing the time as well. In reality, therefore, it often makes sense to speak of “fixed iron triangle” projects. Read more