Written by William Keefe

Choosing the right contract type for project success can be a tough choice. After you have made the decision to buy or outsource vs build internally, and you have completed your vendor selection process, the next step is to begin contract negotiations.  Choosing the correct contract type is critical to project success.  Aligning the buyer’s natural goal for cost control and quality with the seller’s natural goal of profitability and customer satisfaction along with both parties’ need to manage risk are the key factors to keep in mind at this point.

The PMBOK® GUIDE Seventh Edition (Project Management Body of Knowledge), describes the various contract types and the pros and cons from both the buyer’s and sellers’ perspective. 

Fixed Price Contracts are best when a known product is involved.  The buyer benefits from a fixed cost, but may pay a higher upfront cost as they do not bear the risk of unknown factors.  The Sellers’ main benefit is a well-known product and scope but risks potential cost over runs. 

Time and Material (T&M) Contracts are usually the best option if the scope is not well defined or if flexibility is necessary.  For example, if staff augmentation or outside expertise is needed.  The buyer takes the risk of cost overruns but benefits from flexibility.  

Other Contract Types: Cost-Reimbursable, Cost Plus Incentive Fee, and Indefinite Delivery Indefinite Quantity are also options that allow for the buyer and seller to negotiate risk, cost, incentives and flexibility.

At KTL Solutions we will work with you to choose the best option for your project.

Based on our years of experience and our staff of highly qualified Compliance Analysts and our M365 and Azure Engineers we offer Fixed Price Contracts for:

• • M365 Mailbox & SharePoint Migrations

• • Enterprise Mobility +Security Configurations

• • Azure Secure Enclaves and Sentinel Implementations

• • Entra Connect Setup

• • CMMC Gap Assessments

Our clients can be assured they will receive a high-quality product, delivered on time, and meets all elements of the project scope.  

If you need the flexibility of a Time and Material Contract, KTL has on staff: Certified Microsoft Engineers, Certified Software Developers, CMMC Certified Professionals (CCP, CMMC-RP) Our Team can be brought in on a T&M basis to help your staff with:

• • CMMC Compliance & Assessments

• • Implement Dynamics 365

• • MS Power Platform & D365 Customizations

We also offer Managed Service products, Patch Management, Support-as-a-Service, and Compliance-as-a-Service on flexible contract terms to help you maintain your organizations IT environment and stay in compliance with government regulations. Choosing the right contract type for project success!