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RESTORATIONS & RESTOMODS

Fixed Price Billing

Time and Materials Billing

VS

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FIXED PRICE MODEL
TIME AND MATERIALS
Requirements are detailed from the beginning. Limited Scope
SCOPE
Work Scope is wide ranging and vision driven with room for edits
Unforeseen surprises or change orders can cause a project to become stuck or stopped., but cost is fixed.
RISK
An undefined work scope can lead to unknown timelines and increased cost - uncertainty of budget.
Respecting the scope and avoiding changes.
PROJECT MANAGERS PRIORITES
Focuses on quality, process and visionary concept while allowing for change orders .
It's hard to adapt to unexpected challenges, and the process is bureaucratic.
FLEXIBILITY
Easy and flexible. A lot of adaptability to changes and challenges.
The team delivers exactly what the client asked for, not necessarily what was needed.
DELIVERABLES
Deliverables might be adapted because of insights provided during the project.
Might feel tense when it comes to unexpected situations.
RELATIONSHIP
Partnership spirit. Full involvement in every stage to provide the best results.
Respecting the scope and avoiding changes.
UPDATES
Harmony of work scope, change orders, quality control and build ROM.
Known cost upfront + backup from the provider to avoid risks, but unknowns can derail project fulfillment.
FINAL COST
It is unknown in the beginning but adapts to a budgetary ROM with refined work scope.
It takes up to 30-90 days time to scope or bid precisely. Dependent on inferior local shops due to transport cost for bids. . 
TIME TO START
Ability to start right away. Clients can choose shops anywhere in the world.

Time and Materials VS. Fixed Price

Fixed Price

Time and Materials

Being certain about the cost. 

Higher cost of the project - inflated bids

Established deadlines

Worse response to changing conditions

No need to control the process - no collaboration necessary

Longer preparations - bid process hinders 

High flexibility to changing requirements

Lower control over the budget - not a bid

Faster project start and dynamic decision-making process

Need for being much more involved 

Better control overt the project

Uncertainty when it comes to the timeline

TIME AND MATERIALS
FIXED PRICE MODEL
PROS

  • flexible approach to changes - change orders are embraced

  • high chance to create a marketable product - phase edits

  • earlier start to the project - no delays in start time.

  • more control over the development process - visionary edits

  • easier product optimization - change orders are applicable

PROS

  • full control over the budget - the work scope and cost are fixed

  • no need for client's active involvement - cookie-cutter build

  • more control over the timeline - timelines are more specific

CONS

  • chance that the overall budget would be higher than the desired cost with changes in work scope or new problem discoveries

  • high involvement of a client - client collaboration is very necessary

  • hard to plan the deadlines - the actual date is not fixed

CONS

  • no flexibility in reaction to changes - no flexibility

  • higher risk of creating a product with little market demand,

  • sticking to a timeline/fixed budget can compromise the quality,

  • no room for optimization - no adjustments and no edits edits

  • later start of the development - the estimation process hinders

  • risk of higher cost of the project - inflated protectionary bids

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