Fixed price vs. time and materials (T & M). Which is better? Do you prefer one over the other? And do you mix and match on some projects? I know I have on some projects, some consulting engagements and on many large government programs that I've managed over the years.
I can say that in those government programs it really can't be avoided. As for projects, the customer usually wins if it's a fixed price project. Why? Well, change orders do happen, but some work slips through for free and a majority of projects run over budget - but that doesn't mean the customer is paying more. It usually means the delivery organization is eating the extra costs in the form if a lower profit margin. And it’s even worse if you’re not tracking it well in a web-based project management software (www.projectinsight.net) schedule.