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Simple Guide To Our Fixed Price and Team Extension Collaboration Methods

If you’ve ever wondered how we have helped our clients or how we can help solve your software development problem then you came to the right article.

It’s been a while since we wrote about this topic, so to make sure you don’t get outdated information we’ll take you to our extensive yet concise journey through our two best collaboration methods: fixed bid (or fixed price) and extended team (or team extension).

By understanding fixed price and team extension definition, pros and cons, and when to use these approaches, you’ll gain valuable insight into how we can help you and how we deliver excellent results.

So, let’s start from the simplest method: fixed bid/fixed price.

What is Fixed Bid

In a nutshell, the fixed bid or fixed price method entails establishing a predetermined scope, timeline, and cost for a project, providing a clear or fixed roadmap from start to finish. 

This method is simple because if you already established a clear project scope and timeline beforehand, a programmer outsourcing company like us could go straight into the project details like choosing the technology stack and even project cost.

But, if you say the project scope or timeline isn’t clear yet, we could also help you clear them. This is how we usually approach a fixed bid request.

Our Fixed Bid Process

Fixed Price and Team Extension Collaboration Methods - FB

  1. Information Gathering
    This is where we gather information about the project from your project documents and engage in discussions with you.
  2. Estimation
    Next is to estimate the cost, timeline, and scope of the project together. The most important step in this collaboration.
  3. Pre-development
    This is the kickstart of the project, it’s our turn to prepare the necessary technology and documents for the development.
  4. Development
    The step where we develop the project according to the requirements and where you relax and receive report on daily basis.
  5. User Acceptance Test
    The last step before the project is released. You will take part to validate your project’s overall functionality and feasibility.
  6. Production
    After everything goes well and approved, your project will be released to the public.

Fixed Bid Pros and Cons

When we say this Fixed Bid or Fixed Cost method is simple it’s true to some extent and—of course—depends on the project. 

Let’s understand what we mean by this.


  1. Cost predictability and budget control
    Since the initial goal is to maintain a fixed budget and timeline throughout the project, any deviations in either aspect, although not impossible, are strongly minimized.
  2. Clear project scope and timeline
    This point is both a requirement and an advantage. To ensure a fixed budget, we focus on establishing a clear project scope and timeline, which helps us effectively plan and execute the project.
  3. Reduced administrative overhead
    What’s a better advantage than not having to worry about project planning, progress monitoring, and administration of a project?.


  1. Limited flexibility for project changes
    This doesn’t mean you can’t change anything after the project starts, it’s just that you may change only a small part or requirements of the project.
  2. Potential risk of underestimating project requirements
    Underestimation often means missing elements, and when something is missing, the project changes. However, it’s important to note that project flexibility is limited.
  3. Difficulty in accommodating unforeseen challenges
    Challenges are the thing you always expect in any project, but when they’re unforeseen and large enough, such as from the market or competitors, the requirements may change, again.

When To Choose Fixed Bid?

So, you know the fixed bid or fixed price method pros and cons, after that you could decide whether it’s the right collaboration method or not by also looking at these.

  1. When the project requirements are well-defined and unlikely to change significantly
  2. When there is a strict budget that needs to be adhered to
  3. When there is a fixed timeline for project delivery
  4. When the project scope is relatively small and manageable


What is Extended Team

The extended team approach involves assembling a dedicated team of experts who integrate seamlessly with your existing workforce, offering flexibility and scalability to meet your evolving needs.

Here’s how you can visualize it:

Fixed Price and Team Extension Collaboration Methods - ET

After our team integrated into your existing workforce, you’ll have full management over them. We of course keep them in check from our end, and occasionally mediate if there’s any issues between you and our team.

Our Extended Team Process

Fixed Price and Team Extension Collaboration Methods - ET Process

At Smooets, we follow the Agile methodology, and the process of this extended team or team extension involves how our Agile team works in Agile project scenarios.

  1. Information Gathering
    Similar to the fixed bid, this is where we gather information about the project to determine what kind of team is needed for your project.
  2. Sprint Planning
    The first step in any Agile project where the project leader collaborates with the team to define the sprint goal and determine which tasks or backlog items will be addressed during the sprint 
  3. Sprint Development
    Where the development happens according to the sprint planning.
  4. Sprint Demo
    Demonstrating the result of a sprint to the project leader or clients with the goal to validate and gather feedback. This cycle of sprint planning, development, and sprint demo is repeated until all the sprints are completed.
  5. Release
    After all the sprints are completed it’s the time for release.

Extended Team Pros & Cons

Extended team or team extension is an alternative method to fixed bid, and as a result, some of the advantages of the extended team approach are the direct opposite of the disadvantages associated with fixed bid projects, such as these.


  1. Increased flexibility for project changes
    With full control over the team, and without the timeline or budget constraint, changes can be implemented more easily.
  2. Better resource scalability and adaptability
    By being able to adjust your team size and composition based on project needs through a simple contact with us, you can greatly enhance your scalability and adaptability.
  3. Enhanced collaboration and knowledge sharing
    This is one of the unforeseen advantages, because usually each team member brings their unique experiences and expertise to the project.


  1. Potential cost fluctuations
    Like we said before, more changes equals more budget spent.
  2. Communication and coordination complexities
    In a situation where the extended team may be located in different time zones, basic necessities such as communication can become a challenge.
  3. Integration of team members into existing workflows
    This may involve adapting or integrating their methodologies, tools, or communication practices to ensure compatibility and smooth collaboration

When To Choose Extended Team?

  1. When the project requirements are likely to evolve or change over time
  2. When there is a need for additional resources and expertise
  3. When the project scope is large and requires a scalable team
  4. When ongoing collaboration and knowledge sharing are crucial


In conclusion, understanding the fixed bid and extended team collaboration methods is crucial for those of you that want to collaborate with a programmer outsourcing company like us . 

The fixed bid model offers cost predictability and a streamlined project management approach, while the extended team collaboration model provides resource scalability, enhanced collaboration, and knowledge sharing opportunities.

Want to know more about our collaboration with our team? Let’s talk about how we can help your software development project here.

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