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What are advantages and disadvantages of conventional daily (or hourly) rates vs. blended daily rates for project oriented outsourced work?

April 26, 2017advantages blended conventional disadvantages Hourly Oriented project rates vs

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What are advantages and disadvantages of conventional daily (or hourly) rates vs. blended daily rates for project oriented outsourced work?

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Conventional daily (or hourly) rates give more control over the choice of resources to the buyer. However with this control the buyer retains the risk of what is the best mix of resources for the project. Conventional rates create a serious contradiction if the buyer wants to buy at fixed prices, or not to exceed pricing, or a prescribed quality. To balance risks, controls and have the onus on the vendor to optimize the project deliverables and cost, we recommend considering blended pricing, fixed or not-to-exceed project price, and a prescribed quality of the work result.