What is "Fix bid"

"Fix bid" is a cooperation model where both parties agree on the project scope, functionalities, and delivery time before the project starts, and a fixed price is determined. In this cooperation model, the contractor commits to completing the project according to the agreed-upon price and delivering the specified requirements.

Advantages:

1. Budget control: With a fixed bid, the client can have better control over the project budget and costs, mitigating the risk of budget overruns.
2. Clear objectives and delivery time: By establishing project objectives and delivery time upfront, both parties can plan and manage the project schedule more effectively, ensuring reliable and timely delivery.
3. Risk reduction: In a fixed bid cooperation model, the contractor assumes the responsibility and risk of completing the project. The client can entrust the project to the contractor with greater peace of mind, reducing their own risks and burdens.

Disadvantages:

1. Limitations on changes and flexibility: In a fixed bid cooperation model, if the client needs to make changes to the project scope or add new features, it may require renegotiating the price and timeline, potentially incurring additional costs and delaying the project schedule.
2. Not suitable for high uncertainty projects: The fixed bid model may not be suitable for projects with high uncertainty or frequent changes in requirements. In such cases, more flexible cooperation models like Time and Materials (T&M) or Agile development may be more appropriate.

In summary, the advantages of the fixed bid cooperation model lie in budget control, clear objectives, and risk reduction. However, it has limitations in terms of changes and flexibility and may not be suitable for highly uncertain projects. The choice of a suitable cooperation model should be based on the nature, requirements, and risks of the project.