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As correctly pointed on FP as the most used contract type in different industries, that it is preferred by many buyer organizations since the price for product/service is set at the kick off point and not subject to change unless the scope or specifications changes. However, under the FP contract, the buyer should precisely set up the requirements and specifications of the product/services to be procured. Otherwise, any changes to the procurement specifications and requirements can increase the cost to the buyer (PMI, 2013: p363).
In our scenario the specifications and requirements in outsourced software development project may change drastically throughout the project life cycle.
Consequently, I'd like to find out your thoughts by discussing on the effects of those changes in the specifications and requirements to the cost of managing the procurement under your selected form of contract. It is also recommended to consult with the "tips and techniques" placed in Sollish and S emanik (2012: pp.16-17).
Under this condition of uncertainty in specifications and requirements, in the event of picking fixed-price with economic price adjustment contract, then it would likely a greater opportunity of decreasing the project cost or rising the risks of cost increment?
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