A Fixed price for a software development project is in general not the preferred option for the contractor. It comes with risks, as it is hardly possible to produce a fully reliable estimate of the required effort (and thus: costs), especially for larger projects. For the client organization, on the other hand, the limitation of any cost risks via a fixed price agreement is advantageous.

Now, let's apply the principle of "fixed price" not to the entire software application project, but to smaller scopes of development. This will get us to the "fixed price per sprint", and by applying such principle in a contract the cost risk shifts from the contractor (software service provider) to the client. This Fixed Price per Sprint is common in Agile Projects.

Author

Sebastian Zang has cultivated a distinguished career in the IT industry, leading a wide range of software initiatives with a strong emphasis on automation and corporate growth. In his current role as Vice President Partners & Alliances at Beta Systems Software AG, he draws on his extensive expertise to spearhead global technological innovation. A graduate of Universität Passau, Sebastian brings a wealth of international experience, having worked across diverse markets and industries. In addition to his technical acumen, he is widely recognized for his thought leadership in areas such as automation, artificial intelligence, and business strategy.