{"id":987518591,"date":"2024-03-12T11:50:16","date_gmt":"2024-03-12T11:50:16","guid":{"rendered":"https:\/\/pmchampions.com\/?p=987518591"},"modified":"2024-03-13T15:04:08","modified_gmt":"2024-03-13T15:04:08","slug":"time-material-vs-fixed-price-contract-understand-everything","status":"publish","type":"post","link":"https:\/\/pmchampions.com\/en\/time-material-vs-fixed-price-contract-understand-everything\/","title":{"rendered":"Time &amp; Material vs Fixed-Price Contract: Understand Everything"},"content":{"rendered":"\n[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_row _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][pac_divi_table_of_contents title=&#8221;Summary&#8221; collapse_when_sticky=&#8221;on&#8221; opened_icon=&#8221;:||divi||400&#8243; closed_icon=&#8221;;||divi||400&#8243; included_headings=&#8221;off|on|on|on|off|off&#8221; exclude_headings_by_class=&#8221;on&#8221; show_keyword_highlight=&#8221;on&#8221; show_keyword_highlight_placeholder=&#8221;Mots Cl\u00e9s &#8230;&#8221; level_markers_1=&#8221;icons&#8221; icon_marker_1=&#8221;=||divi||400&#8243; level_markers_2=&#8221;icons&#8221; icon_marker_2=&#8221;^||divi||400&#8243; level_markers_3=&#8221;icons&#8221; icon_marker_3=&#8221;E||divi||400&#8243; level_markers_4=&#8221;icons&#8221; icon_marker_4=&#8221;5||divi||400&#8243; title_container_bg_color=&#8221;#1a9e21&#8243; body_area_height=&#8221;650px&#8221; body_area_scroll_color=&#8221;#000000&#8243; body_area_text_link_underline=&#8221;#000000&#8243; body_area_text_link_padding=&#8221;10px|0px|0px|0px|false|false&#8221; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; title_font_font=&#8221;Quicksand||||||||&#8221; heading_all_font=&#8221;|600|||||||&#8221; heading_all_font_size=&#8221;18px&#8221; marker_all_font=&#8221;|600|||||||&#8221; motion_trigger_start=&#8221;top&#8221; heading_all_font_size_tablet=&#8221;15px&#8221; heading_all_font_size_phone=&#8221;15px&#8221; heading_all_font_size_last_edited=&#8221;on|phone&#8221; border_radii=&#8221;on|10px|10px|10px|10px&#8221; border_color_all=&#8221;RGBA(255,255,255,0)&#8221; border_radii_title_container=&#8221;off|10px|10px|0px|0px&#8221; border_radii_body_area=&#8221;off|0px|0px|10px|10px&#8221; border_width_all_body_area=&#8221;3px&#8221; border_color_all_body_area=&#8221;RGBA(255,255,255,0)&#8221; box_shadow_style=&#8221;preset2&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][\/pac_divi_table_of_contents][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#f0f3f6&#8243; custom_padding=&#8221;0px||0px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_row _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<div class=\"ControlZone ControlZone--clean a_b_50a7110f\" data-automation-id=\"CanvasControl\" id=\"cb33b57f-7ebe-44dd-a7d8-51b1a8786501\">\n<div class=\"ControlZone--control\">\n<div data-sp-feature-tag=\"Rich Text Editor\" class=\"rte-webpart rte--ck5 rte--read-ck5 headerFontSizeLegacy uniformSpacingForElements\" data-sp-feature-instance-id=\"cb33b57f-7ebe-44dd-a7d8-51b1a8786501\" dir=\"auto\">\n<div data-automation-id=\"textBox\" class=\"ck-content rteEmphasis root-179\">\n<blockquote>\n<p style=\"text-align: center;\"><span class=\"fontSizeMedium\">&#8220;A service under T&amp;M (Time and Material) does not imply an obligation of result&#8221;<\/span><br><span class=\"fontSizeMedium\">&#8220;A commitment to results is necessarily a fixed-price&#8221;<\/span><br><span class=\"fontSizeMedium\">&#8220;The service is fixed-price, but the billing is based on the time spent&#8221;<\/span><br><span class=\"fontSizeMedium\">&#8220;The commitment of means relieves the company of any responsibility for the achievement of the client&#8217;s objectives&#8221;<\/span><br><span class=\"fontSizeMedium\">&#8220;A project on a T&amp;M contract is just about providing resources for the client&#8221;<\/span><\/p>\n<p style=\"text-align: center;\"><em><strong><span class=\"fontSizeMedium\">So many selected untruths that can be heard regularly and that deserve some clarification.<\/span><\/strong><\/em><\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n<\/div>\n<\/div>[\/et_pb_text][dipl_tilt_image image=&#8221;https:\/\/pmchampions.com\/wp-content\/uploads\/2024\/03\/bowling.png&#8221; use_3d_effect=&#8221;on&#8221; use_overlay=&#8221;off&#8221; content_on_hover=&#8221;on&#8221; content_animation_direction=&#8221;top&#8221; _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; max_width=&#8221;27%&#8221; custom_margin=&#8221;|||30%|false|false&#8221; custom_margin_tablet=&#8221;|||30%|false|false&#8221; custom_margin_phone=&#8221;|||30%|false|false&#8221; custom_margin_last_edited=&#8221;on|phone&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][\/dipl_tilt_image][dipl_separator seprator_thickness=&#8221;1px&#8221; separator_color=&#8221;rgba(0,0,0,0.54)&#8221; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][\/dipl_separator][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=&#8221;1_4,3_4&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||40px||false|false&#8221; link_option_url=&#8221;https:\/\/pmchampions.com\/en\/how-to-apply-contract-effectively-to-agile-project\/&#8221; link_option_url_new_window=&#8221;on&#8221; border_radii=&#8221;on|0.25rem|0.25rem|0.25rem|0.25rem&#8221; border_width_all=&#8221;1px&#8221; border_color_all=&#8221;#dee2e6&#8243; box_shadow_style=&#8221;preset3&#8243; box_shadow_vertical=&#8221;5px&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;1_4&#8243; _builder_version=&#8221;4.22.0&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_image src=&#8221;https:\/\/pmchampions.com\/wp-content\/uploads\/2023\/09\/Agile-Contract-en.png&#8221; title_text=&#8221;Contractualisation&#8221; _builder_version=&#8221;4.22.0&#8243; _module_preset=&#8221;default&#8221; width=&#8221;100%&#8221; width_tablet=&#8221;100%&#8221; width_phone=&#8221;100%&#8221; width_last_edited=&#8221;on|tablet&#8221; 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text_font_size_last_edited=&#8221;on|phone&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<h6><span style=\"color: #808080;\"><strong>Agility:<\/strong><\/span><\/h6>\n<p><strong><span style=\"color: #ff6600;\"><a href=\"https:\/\/pmchampions.com\/en\/agility-and-scrum\/\" target=\"_blank\" rel=\"noopener\" style=\"color: #ff6600;\">Discover our articles on agility<\/a><\/span><\/strong><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px||0px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_row _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;||0px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text module_class=&#8221;blue-list list_space&#8221; _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;||21px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<h2 id=\"qu-est-ce-qu-un-forfait\"><span class=\"fontSizeLarge\"><span class=\"fontColorThemePrimary\">What is a <strong>fixed-price<\/strong> ?<\/span><\/span><\/h2>\n<p><span class=\"fontSizeMedium\">A fixed-price contract service refers to a <strong>service provided in return for a fixed amount<\/strong>. <\/span><\/p>\n<p><span class=\"fontSizeMedium\">The service provider who is engaged through a fixed-price contract is obliged to deliver a specific project to his client for a fixed amount, and in most cases within the framework of a defined schedule. <\/span><\/p>\n<p><span class=\"fontSizeMedium\">The <i>Fixed Price<\/i> commitment takes full advantage of the triple constraint of <strong><a href=\"https:\/\/pmchampions.com\/en\/project-budget-management\/\">cost<\/a><\/strong>, <strong><a href=\"https:\/\/pmchampions.com\/en\/project-time-management\/\">time<\/a><\/strong>and <strong><a href=\"https:\/\/pmchampions.com\/en\/project-scope-management\/\">scope<\/a><\/strong>.<\/span><\/p>\n<p><span class=\"fontSizeMedium\">Each of the 3 components is fixed either in the contract or <strong><a href=\"https:\/\/pmchampions.com\/fr\/le-kick-off-projet-et-les-12-erreurs-a-eviter\/\">the start of the project<\/a><\/strong> <\/span><\/p>\n<p><span class=\"fontSizeMedium\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-987518546 aligncenter size-full\" src=\"https:\/\/pmchampions.com\/wp-content\/uploads\/2024\/03\/contract-1.png\" alt=\"\" width=\"192\" height=\"192\"><\/span><\/p>\n<p><span class=\"fontSizeMedium\">Invoicing is generally based on the progress of the project, according to a predefined schedule that can correspond to the phases of the project (20% at the time of ordering, for example).  <\/span><\/p>\n<p><span class=\"fontSizeMedium\">As far as possible, <strong>payment deadlines should not be linked to validation or acceptance milestones<\/strong> and delivery milestones should be preferred.<\/span><\/p>\n<p><span class=\"fontSizeMedium\">In this context, it is essential to obtain a clear and precise expression of the customer&#8217;s needs. Either through a set of specifications or through our technical and commercial proposal updated following discussions between the service provider and its customer.<\/span><\/p>\n<p><span class=\"fontSizeMedium\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-987518555 aligncenter size-full\" src=\"https:\/\/pmchampions.com\/wp-content\/uploads\/2024\/03\/link.png\" alt=\"\" width=\"167\" height=\"167\"><\/span><\/p>\n<p><span class=\"fontSizeMedium\">Usually, in the context of fixed-price contracts, the service provider is subject to an obligation of result (also known as a commitment of result), on the objective and quantifiable elements of the services (e.g. schedule, SLAs, etc.).<\/span><\/p>\n<p>&nbsp;<\/p>\n<div class=\"a_c_50a7110f n_c_50a7110f CanvasSection CanvasSection-col CanvasSection-sm12 CanvasSection--read CanvasSection-xl6 q_c_50a7110f\" data-automation-id=\"CanvasSection\">\n<div id=\"4166c1c8-5bcc-495b-9f4f-a2cf2244a93b\" class=\"ControlZone ControlZone--clean a_e_50a7110f\" data-automation-id=\"CanvasControl\">\n<div class=\"ControlZone--control\">\n<div class=\"rte-webpart rte--ck5 rte--read-ck5 headerFontSizeLegacy uniformSpacingForElements\" dir=\"auto\" data-sp-feature-tag=\"Rich Text Editor\" data-sp-feature-instance-id=\"4166c1c8-5bcc-495b-9f4f-a2cf2244a93b\">\n<div class=\"ck-content rteEmphasis root-173\" data-automation-id=\"textBox\">\n<h3><span class=\"fontSizeMedium\"><span class=\"fontColorThemePrimary\"><strong>Popularized example of fixed-price<\/strong><\/span><\/span><\/h3>\n<p><span class=\"fontSizeMedium\">The service provider commits for a budget of 350k\u20ac to integrate and put into production the customer&#8217;s e-Commerce site by November 10, 2030. In accordance with the requirements provided by him and detailed in the contract.<\/span><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"a_c_50a7110f n_c_50a7110f CanvasSection CanvasSection-col CanvasSection-sm12 CanvasSection--read CanvasSection-xl6 q_c_50a7110f\" data-automation-id=\"CanvasSection\">\n<div id=\"4b540dbf-8019-4b72-a06d-99812f8408f9\" class=\"ControlZone ControlZone--clean a_e_50a7110f\" data-automation-id=\"CanvasControl\">\n<div class=\"ControlZone--control\">\n<div id=\"vpc_WebPart.SpacerWebPart.internal.4b540dbf-8019-4b72-a06d-99812f8408f9\" data-viewport-id=\"WebPart.SpacerWebPart.internal.4b540dbf-8019-4b72-a06d-99812f8408f9\">\n<div data-sp-feature-tag=\"SpacerWebPart web part (Espacement)\" data-sp-feature-instance-id=\"4b540dbf-8019-4b72-a06d-99812f8408f9\" data-sp-web-part-id=\"8654b779-4886-46d4-8ffb-b5ed960ee986\">\n<div class=\"a_a_9c6a0ff6 m_a_9c6a0ff6 b_a_9c6a0ff6 spacer-201\" tabindex=\"-1\" role=\"presentation\" aria-hidden=\"true\" aria-label=\"Utilisez la fl\u00e8che vers le haut pour diminuer la hauteur et la fl\u00e8che vers le bas pour augmenter la hauteur du composant WebPart Espacement par incr\u00e9ments de 4 pixels.\" data-automation-id=\"SpacerMainContent\"> <\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"ee7061cc-7e02-4b48-968a-f272272947ed\" class=\"ControlZone ControlZone--clean a_e_50a7110f\" data-automation-id=\"CanvasControl\">\n<div class=\"ControlZone--control\">\n<div class=\"rte-webpart rte--ck5 rte--read-ck5 headerFontSizeLegacy uniformSpacingForElements\" dir=\"auto\" data-sp-feature-tag=\"Rich Text Editor\" data-sp-feature-instance-id=\"ee7061cc-7e02-4b48-968a-f272272947ed\">\n<div class=\"ck-content rteEmphasis root-173\" data-automation-id=\"textBox\">\n<h3><span class=\"fontSizeMedium\"><span class=\"fontColorThemePrimary\"><strong>What the fixed-price means to the customer<\/strong><\/span><\/span><\/h3>\n<p><span class=\"fontSizeMedium\">The big advantage of the fixed-price is that the service provider bears the costs in the event of a project drift (unforeseen charges and\/or <i>rework):<\/i> he controls his budget. <\/span><\/p>\n<p><span class=\"fontSizeMedium\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-987518564 aligncenter size-full\" src=\"https:\/\/pmchampions.com\/wp-content\/uploads\/2024\/03\/budget.png\" alt=\"\" width=\"177\" height=\"177\"><\/span><\/p>\n<p><span class=\"fontSizeMedium\">As the fixed-price most often implies a firm deadline, time management is also advantageous for the customer (<i>Go-To-Market<\/i>).<\/span><\/p>\n<p><span class=\"fontSizeMedium\"> On the other hand, and even if the fixed-price contract is absolutely reassuring for the client, any modification of the commitment framework at his initiative exposes him to a request for an additional budget from the service provider. <\/span><\/p>\n<p><span class=\"fontSizeMedium\">A technical-functional change or a new requirement not initially foreseen implies agreeing on an extended deadline and an additional cost.  <\/span><\/p>\n<p><span class=\"fontSizeMedium\">It should be noted that the human and technical resources implemented by the service provider, and even if the customer is very tempted to interfere with the proposed system, remain at the discretion of the service provider.<\/span><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"e68a182a-8301-4932-a637-7bab6e1d4d4d\" class=\"ControlZone ControlZone--clean a_e_50a7110f\" data-automation-id=\"CanvasControl\">\n<div class=\"ControlZone--control\">\n<div class=\"rte-webpart rte--ck5 rte--read-ck5 headerFontSizeLegacy uniformSpacingForElements\" dir=\"auto\" data-sp-feature-tag=\"Rich Text Editor\" data-sp-feature-instance-id=\"e68a182a-8301-4932-a637-7bab6e1d4d4d\">\n<div class=\"ck-content rteEmphasis root-173\" data-automation-id=\"textBox\">\n<h3><span class=\"fontSizeMedium\"><span class=\"fontColorThemePrimary\"><strong>What the fixed-price means for the provider<\/strong><\/span><\/span><\/h3>\n<p><span class=\"fontSizeMedium\">The success of a fixed-price commitment is more demanding. <\/span><\/p>\n<p><span class=\"fontSizeMedium\">It starts at the Pre-Sales where the maturity of the project (and the customer) will be a key factor in engagement.  <\/span><\/p>\n<p><span class=\"fontSizeMedium\">The needs expressed by the client (specifications, requirements file, specifications, etc.) must be as precise and exhaustive as possible to allow the definition of relevant costing hypotheses and, ultimately, a realistic budget definition.  <\/span><\/p>\n<p><span class=\"fontSizeMedium\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-987518566 aligncenter size-full\" src=\"https:\/\/pmchampions.com\/wp-content\/uploads\/2024\/03\/specification.png\" alt=\"\" width=\"179\" height=\"179\"><\/span><\/p>\n<p><span class=\"fontSizeMedium\">It continues in Delivery, where the project management by the service provider will have to be very precise so as not to go beyond the framework initially agreed with the client (expenses, schedule, resources, etc.).  <\/span><\/p>\n<p><span class=\"fontSizeMedium\">Even if there is a contingency to absorb operational <strong><a href=\"https:\/\/pmchampions.com\/en\/project-risk-management\/\">risk<\/a><\/strong>. <\/span><\/p>\n<p><span class=\"fontSizeMedium\">For the service provider, however, the primary objective remains to deliver the project at a lower cost than expected, while respecting its commitments in terms of schedule and <strong><a href=\"https:\/\/pmchampions.com\/en\/project-quality-management\/\">quality<\/a><\/strong>.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; sticky_enabled=&#8221;0&#8243;]<div class=\"a_c_50a7110f n_c_50a7110f CanvasSection CanvasSection-col CanvasSection-sm12 CanvasSection--read CanvasSection-xl6 q_c_50a7110f\" data-automation-id=\"CanvasSection\">\n<div id=\"a039a633-3947-4732-8117-b2b920dda013\" class=\"ControlZone ControlZone--clean a_e_50a7110f\" data-automation-id=\"CanvasControl\">\n<div class=\"ControlZone--control\">\n<div class=\"rte-webpart rte--ck5 rte--read-ck5 headerFontSizeLegacy uniformSpacingForElements\" dir=\"auto\" data-sp-feature-tag=\"Rich Text Editor\" data-sp-feature-instance-id=\"a039a633-3947-4732-8117-b2b920dda013\">\n<div class=\"ck-content rteEmphasis root-172\" data-automation-id=\"textBox\">\n<div>\n<h2 id=\"qu-est-ce-qu-une-r\u00e9gie\"><span class=\"fontSizeLarge\"><span class=\"fontColorThemePrimary\">What is an T&amp;M (Time and Material) contract?<\/span><\/span><\/h2>\n<p><span class=\"fontSizeMedium\"><\/span><\/p>\n<p><span class=\"fontSizeMedium\">A Time &amp; Material service is a <strong>service <\/strong><strong>invoiced by Time <\/strong><i>&amp; Material<\/i>. <\/span><\/p>\n<\/div>\n<p><span class=\"fontSizeMedium\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-987518569 aligncenter size-full\" src=\"https:\/\/pmchampions.com\/wp-content\/uploads\/2024\/03\/team-1.png\" alt=\"\" width=\"173\" height=\"173\"><\/span><\/p>\n<p><span class=\"fontSizeMedium\">Invoicing is then based on a daily rate and the days actually worked by the service provider&#8217;s teams.<\/span><\/p>\n<p><span class=\"fontSizeMedium\">This billing method is generally chosen as part of Technical Support (TS) services.<\/span><\/p>\n<p><span class=\"fontSizeMedium\">Even if there is often no deadline for the completion of the project or the completion of a specific deliverable. The service is provided over <strong>a given calendar period<\/strong> which corresponds to the duration of the commitment between the parties (i.e. duration of the contract; of the order).<\/span><\/p>\n<p><span class=\"fontSizeMedium\">However, this is a question of service provision and not of the provision of resources.<\/span><\/p>\n<p><span class=\"fontSizeMedium\">  The services in question, as well as the associated potential deliverables, must therefore be clearly defined in the technical and commercial proposal and\/or in the contract.  <\/span><\/p>\n<p><span class=\"fontSizeMedium\">Therefore, the client must also express his or her needs (the profile, but also the purpose of the service and the expectations concerning them).<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"c18b8c0a-9c7e-40f2-a471-8983a3535767\" class=\"ControlZone ControlZone--clean a_e_50a7110f\" data-automation-id=\"CanvasControl\">\n<div class=\"ControlZone--control\">\n<div class=\"rte-webpart rte--ck5 rte--read-ck5 headerFontSizeLegacy uniformSpacingForElements\" dir=\"auto\" data-sp-feature-tag=\"Rich Text Editor\" data-sp-feature-instance-id=\"c18b8c0a-9c7e-40f2-a471-8983a3535767\">\n<div class=\"ck-content rteEmphasis root-172\" data-automation-id=\"textBox\">\n<h3><\/h3>\n<h3><span class=\"fontSizeMedium\"><span class=\"fontColorThemePrimary\"><strong>Popularized Example of T&amp;M<\/strong><\/span><\/span><\/h3>\n<p><span class=\"fontSizeMedium\">The service provider undertakes to provide the client with a team of 4 targeted profiles on a full-time basis<sup>from January 1<\/sup> to December 31, 2030 for Technical Support services aimed at developing a <i>clienteling<\/i> product.<\/span><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"a_c_50a7110f n_c_50a7110f CanvasSection CanvasSection-col CanvasSection-sm12 CanvasSection--read CanvasSection-xl6 q_c_50a7110f\" data-automation-id=\"CanvasSection\">\n<div id=\"27aa60ea-52f1-4f9d-93f7-0b9299f7a6e7\" class=\"ControlZone ControlZone--clean a_e_50a7110f\" data-automation-id=\"CanvasControl\">\n<div class=\"ControlZone--control\">\n<div class=\"rte-webpart rte--ck5 rte--read-ck5 headerFontSizeLegacy uniformSpacingForElements\" dir=\"auto\" data-sp-feature-tag=\"Rich Text Editor\" data-sp-feature-instance-id=\"27aa60ea-52f1-4f9d-93f7-0b9299f7a6e7\">\n<div class=\"ck-content rteEmphasis root-172\" data-automation-id=\"textBox\">\n<h3><span class=\"fontSizeMedium\"><span class=\"fontColorThemePrimary\"><strong>What the T&amp;M means for the client<\/strong><\/span><\/span><\/h3>\n<p><span class=\"fontSizeMedium\">The T&amp;M can allow the client to strengthen its project team by bringing in the expertise of external resources. <\/span><\/p>\n<p>&nbsp;<\/p>\n<div id=\"attachment_987513281\" style=\"width: 201px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-987513281\" class=\"wp-image-987513281 size-full\" src=\"https:\/\/pmchampions.com\/wp-content\/uploads\/2023\/10\/yoga.png\" alt=\"flexibility\" width=\"191\" height=\"191\"><p id=\"caption-attachment-987513281\" class=\"wp-caption-text\">flexibility<\/p><\/div>\n<p>&nbsp;<\/p>\n<p><span class=\"fontSizeMedium\">This engagement model has several advantages: great flexibility (peaks and drops in activity, for example), contribution to expertise not present in-house, speed in scaling.<\/span><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"2aecfdf1-f6d2-4257-b558-fe7055a00e77\" class=\"ControlZone ControlZone--clean a_e_50a7110f\" data-automation-id=\"CanvasControl\">\n<div class=\"ControlZone--control\">\n<div class=\"rte-webpart rte--ck5 rte--read-ck5 headerFontSizeLegacy uniformSpacingForElements\" dir=\"auto\" data-sp-feature-tag=\"Rich Text Editor\" data-sp-feature-instance-id=\"2aecfdf1-f6d2-4257-b558-fe7055a00e77\">\n<div class=\"ck-content rteEmphasis root-172\" data-automation-id=\"textBox\">\n<h3><span class=\"fontSizeMedium\"><span class=\"fontColorThemePrimary\"><strong>What does the T&amp;M contract mean for the service provider ?<\/strong><\/span><\/span><\/h3>\n<p><span class=\"fontSizeMedium\">For the service provider, the objective is to ensure that the service is long-term and, if possible, to increase the number of positions with the client by demonstrating the quality of its employees.<\/span><\/p>\n<p><span class=\"fontSizeMedium\">The service provider must implement change management mechanisms (early departure, replacement, notice, time limits for increasing and decreasing costs, etc.) to deal with contingencies.  <\/span><\/p>\n<p><span class=\"fontSizeMedium\">Unitary Technical Support , i.e. involving only a very few employees or only one with the customer, is a burden for the service provider in terms of management and is of little interest in terms of business development: it should therefore be avoided when possible.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px||0px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_row _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;||0px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text module_class=&#8221;blue-list list_space&#8221; _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;rgba(224,11,0,0.27)&#8221; custom_padding=&#8221;20px|20px|20px|20px|false|false&#8221; border_radii=&#8221;on|10px|10px|10px|10px&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<div>\n<h2 id=\"point-d\u2019attention-le-d\u00e9lit-de-marchandage-de-pr\u00eat-de-main-d\u2019\u0153uvre-illicite\"><span class=\"fontSizeLarge\"><span class=\"fontColorThemePrimary\"><u>Point of attention<\/u> : the offence of haggling and lending unlawful labour<\/span><\/span><\/h2>\n<p>&nbsp;<\/p>\n<\/div>\n<p><span class=\"fontSizeMedium\">In France and in most countries, the provision of staff (except temporary) is prohibited.<\/span><br><span class=\"fontSizeMedium\">The service provider as a service provider <strong>does not make its staff available to customers<\/strong> (even in the case of T&amp;M and\/or technical support). <\/span><\/p>\n<p><span class=\"fontSizeMedium\">Also, to avoid any risk of haggling or the illegal lending of labour, it is necessary to pay close attention to concepts, vocabulary and practices, in particular:<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\"> I can present to the client the resources approached for a project but under no circumstances do I have the client conduct &#8220;recruitment interviews&#8221;;<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\"> I only communicate anonymised CVs and only present &#8220;prospective&#8221; teams;<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\"> I make sure that the HR management of the teams is well provided by the service provider (regular interviews, training, validation of leave);<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\"> I make sure that the client has clearly defined their project\/mission or has identified the expected deliverables;<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\"> I make sure that the resources provided by the service provider are clearly identified as being external to the Client&#8217;s teams (external email address, badge and email signature);<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\"> I make sure that the resources provided by the service provider do not have access to customer benefits (private sales to staff, corporate gifts, etc.). <\/span> <\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px||0px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_row _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;||0px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text module_class=&#8221;blue-list list_space&#8221; _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<div class=\"a_c_50a7110f n_c_50a7110f CanvasSection CanvasSection-col CanvasSection-sm12 CanvasSection--read CanvasSection-xl6 q_c_50a7110f\" data-automation-id=\"CanvasSection\">\n<div id=\"79f57805-1079-4f6b-bcb1-fdc20d3891e4\" class=\"ControlZone ControlZone--clean a_e_50a7110f\" data-automation-id=\"CanvasControl\">\n<div class=\"ControlZone--control\">\n<div class=\"rte-webpart rte--ck5 rte--read-ck5 headerFontSizeLegacy uniformSpacingForElements\" dir=\"auto\" data-sp-feature-tag=\"Rich Text Editor\" data-sp-feature-instance-id=\"79f57805-1079-4f6b-bcb1-fdc20d3891e4\">\n<div class=\"ck-content rteEmphasis root-172\" data-automation-id=\"textBox\">\n<div>\n<h2 id=\"qu-est-ce-qu-une-obligation-de-r\u00e9sultat\"><span class=\"fontSizeLarge\"><span class=\"fontColorThemePrimary\">What is an Obligation of Result?<\/span><\/span><\/h2>\n<p>&nbsp;<\/p>\n<\/div>\n<p><span class=\"fontSizeMedium\">When the service provider commits to an obligation of result (also known as a &#8220;commitment of result&#8221;), <strong>the company commits to the client to achieve a defined result<\/strong>.  <\/span><\/p>\n<p><span class=\"fontSizeMedium\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-987518573 aligncenter size-full\" src=\"https:\/\/pmchampions.com\/wp-content\/uploads\/2024\/03\/evaluation.png\" alt=\"\" width=\"184\" height=\"184\"><\/span><\/p>\n<p><span class=\"fontSizeMedium\">In practice, in the event of non-achievement of the expected result, the service provider is by default in default unless it can be proven that this non-achievement is the consequence of the fault of the client, a third party or a case of force majeure.<\/span><\/p>\n<p><span class=\"fontSizeMedium\">This obligation of result is often provided for in fixed-price contracts, but it is quite possible to provide for an obligation of result in a contract invoiced in T&amp;M mode, for example on the completion of a deliverable within a specific deadline.<\/span><\/p>\n<p><span class=\"fontSizeMedium\">It is advisable to <strong>avoid committing to a general obligation of result <\/strong>but to limit it to objective, quantifiable elements that are fully controlled by the service provider (e.g. mandatory deadlines, SLAs, functional specifications defined by the service provider).<\/span><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"a_c_50a7110f n_c_50a7110f CanvasSection CanvasSection-col CanvasSection-sm12 CanvasSection--read CanvasSection-xl6 q_c_50a7110f\" data-automation-id=\"CanvasSection\">\n<div id=\"f307e93a-2a5e-4120-b5de-17ced773595b\" class=\"ControlZone ControlZone--clean a_e_50a7110f\" data-automation-id=\"CanvasControl\">\n<div class=\"ControlZone--control\">\n<div class=\"rte-webpart rte--ck5 rte--read-ck5 headerFontSizeLegacy uniformSpacingForElements\" dir=\"auto\" data-sp-feature-tag=\"Rich Text Editor\" data-sp-feature-instance-id=\"f307e93a-2a5e-4120-b5de-17ced773595b\">\n<div class=\"ck-content rteEmphasis root-172\" data-automation-id=\"textBox\">\n<div>\n<h2 id=\"qu-est-ce-qu-une-obligation-de-moyens\"><span class=\"fontSizeLarge\"><span class=\"fontColorThemePrimary\">What is an Obligation of Means?<\/span><\/span><\/h2>\n<p>&nbsp;<\/p>\n<\/div>\n<p><span class=\"fontSizeMedium\">When the service provider commits to an obligation of means (also known as a &#8220;commitment of means&#8221;), <strong>the company undertakes to implement the means necessary to carry out the service<\/strong>.  <\/span><\/p>\n<p><span class=\"fontSizeMedium\">In practice, in the event of non-compliance with the service, the Client must provide proof that the service provider has not implemented the expected means.<\/span><\/p>\n<p><span class=\"fontSizeMedium\">Technical Support services are generally provided on the basis of an obligation of means, but it is quite possible to provide for an obligation of means in a contract invoiced in fixed-price mode.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;0px||0px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_row _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;||0px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text module_class=&#8221;blue-list list_space&#8221; _builder_version=&#8221;4.24.2&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;rgba(124,218,36,0.29)&#8221; custom_padding=&#8221;20px|20px|20px|20px|false|false&#8221; border_radii=&#8221;on|10px|10px|10px|10px&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;]<div>\n<h2><span class=\"fontSizeMediumPlus\"><span style=\"text-decoration: underline;\">Best Practices Checklist<\/span> for Writing a Technical and Business Proposal<\/span><\/h2>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\"> I qualify the service provider&#8217;s obligation in my technical and commercial proposal, regardless of the nature of the services: &#8220;Obligation of means&#8221; or &#8220;obligation of result on the objective and quantifiable elements controlled exclusively by the service provider&#8221;<\/span><\/p>\n<\/div>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\"> <span> <\/span><span>I<\/span><span> <\/span>reject any general obligation of result.<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\"> <span> <\/span><span>I <\/span>do not make an &#8220;end-to-end&#8221; or &#8220;turnkey&#8221; or &#8220;good finish&#8221; commitment (commitment to the entire project, including the services\/solutions of third-party service providers, mainly in the context of integration projects).<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\">  If the client requests a guarantee, I limit it in time and take the necessary associated contingency (i.e. factored into the financial model). I disclaim any performance guarantee, which is equivalent to an unlimited warranty.<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\"> I only commit to achievable SLAs (even if there are no penalties).<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\">  I am transparent with the client in the event of subcontracting and ask for their prior written consent. It should be noted that from a legal point of view (contract, law, GDPR) the provider&#8217;s offshore agency is considered a subcontractor or sub-processor.<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\"> I systematically include in my answer the T&amp;Cs (Terms and Conditions) or the contract template or the draft contract of the client reviewed by the Legal Department.<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\">  I don&#8217;t start the services until the contract has been signed. Indeed, services provided without contractual coverage are carried out at the risk of the service provider (absence of liability ceiling, risk of refusal of payment by the client, etc.).  <\/span><\/p>\n<p><span class=\"fontSizeMedium\"><span class=\"fontSizeMediumPlus\">\u2714\ufe0f <\/span>If I have included a contract template or the T&amp;Cs (Terms and Conditions) in my proposal, I can initiate the service on the basis of an order from the customer referencing the technical and commercial proposal of the service provider.<\/span><\/p>\n<p><span class=\"fontSizeMediumPlus\">\u2714\ufe0f<\/span><span class=\"fontSizeMedium\"> I don&#8217;t forget that any technical and commercial proposal is binding for the service provider. <\/span> <\/p>\n<p><span class=\"fontSizeMedium\"><span class=\"fontSizeMediumPlus\">\u2714\ufe0f  <\/span>It must therefore contain all the safeguards necessary to protect the interests of the service provider, such as all the hypotheses (e.g. average number of tickets per month in the context of a Third-Party Application Maintenance), the customer prerequisites (e.g. mobilization of the client&#8217;s team, additional information required, deadline for validation of deliverables, etc.), reservations to the specifications, applicable contractual conditions, etc.<\/span><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;||0px|||&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text module_class=&#8221;blue-list&#8221; _builder_version=&#8221;4.23.1&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n","protected":false},"excerpt":{"rendered":"<p>Fixed-price vs. T&amp;M , Differences and Implications for Client &amp; Service Provider. Obligation of result vs. means. Know the best practices for contractualization<\/p>\n","protected":false},"author":1,"featured_media":987518617,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[77],"tags":[24,83],"class_list":["post-987518591","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-project-management-practices","tag-en","tag-fundamental"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/pmchampions.com\/en\/wp-json\/wp\/v2\/posts\/987518591","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pmchampions.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pmchampions.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pmchampions.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pmchampions.com\/en\/wp-json\/wp\/v2\/comments?post=987518591"}],"version-history":[{"count":0,"href":"https:\/\/pmchampions.com\/en\/wp-json\/wp\/v2\/posts\/987518591\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pmchampions.com\/en\/wp-json\/wp\/v2\/media\/987518617"}],"wp:attachment":[{"href":"https:\/\/pmchampions.com\/en\/wp-json\/wp\/v2\/media?parent=987518591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pmchampions.com\/en\/wp-json\/wp\/v2\/categories?post=987518591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pmchampions.com\/en\/wp-json\/wp\/v2\/tags?post=987518591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}