Fixed price and time and materials split risk differently: one agreed price for a defined scope, or billing for the hours and costs actually spent. Under fixed price the provider absorbs overruns; under time and materials the client does.
Scope creep is the gradual, uncontrolled expansion of a project's requirements after work has started, without matching changes to time, budget or resources. It is a common reason projects run late.
A statement of work (SOW) is a document that defines one engagement: the work, deliverables, timeline, roles, fees and acceptance terms. It usually sits under a broader master services agreement.
Time and materials (T&M) is a contract model where the client pays for the actual time worked and costs incurred, at agreed rates. It replaces a fixed price for a fixed scope with flexible billing that follows the work as it changes.
An engagement model is the commercial and working structure under which a company buys technical work from people or providers. Common examples include staff augmentation, dedicated teams, project outsourcing, managed services, fixed price and time and materials.
A fixed-price contract sets one agreed price for a defined scope of work, so the provider carries the risk if the work takes longer than planned. It works best when requirements are clear, stable and testable before work begins.
A rate card is a provider's list of agreed prices by role, seniority level or service, used to quote and bill work under a contract. In technology staffing it usually sets hourly, daily or monthly rates for each engineer profile.
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