Without clear requirements, it can be a business suicide to agree on a project price. I have seen it happening. Optimistic estimations first, and endless fixes and "small" feature additions.
Then the project goes over budget or over expected time. And everyone is frustrated.
On the other hand, if it is charged by hour, but the project still does not have clear requirements, the client can get frustrated because they had some expectations on how long it is going to take and how much money they are willing to spend.
In my opinion, a huge chunk of work should be on making specifications and writing down requirements. Maybe it should be charged separately as a whole. And maybe building a prototype, if necessary, can be another "product".
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Without clear requirements, it can be a business suicide to agree on a project price. I have seen it happening. Optimistic estimations first, and endless fixes and "small" feature additions.
Then the project goes over budget or over expected time. And everyone is frustrated.
On the other hand, if it is charged by hour, but the project still does not have clear requirements, the client can get frustrated because they had some expectations on how long it is going to take and how much money they are willing to spend.
In my opinion, a huge chunk of work should be on making specifications and writing down requirements. Maybe it should be charged separately as a whole. And maybe building a prototype, if necessary, can be another "product".