Hey PS Gang,

We’ve been doing all of our implementation engagements as pure T&M for many years. We’re seeing increasing pressure to offer fixed-fee
as an option for some new customers/deals. Our software is HIGHLY customizable, and it is quite difficult without doing many weeks of
Discovery to really nail down a concrete scope. So, there’s clearly risk involved.

I know that we could take a phased approach and sell just a Requirements Gathering phase that would then allow us to provide a
fixed-fee implementation project, but I want to avoid that as it will slow down software deals.

I’m wondering if anyone has written/used any language into a Statement of Work to the effect of “If we discover any significant
complexity that was unforeseeable with the information provided by the customer in advance of this contract or that was specifically
undisclosed by the customer, we may need to issue a change order....”

In our case, we know the one or two specific areas where complexity can crop up, so this statement could be pretty specific.

Thoughts or suggestions?

Thanks in advance!

Dean T.