Selecting your R&D team will make or break your medical device development project. And whether you’re a start-up or an established company looking to supplement an existing team, cost is always a factor. You want to keep costs down – but don’t forget, you also need to keep your productivity high.
We’ve been the “rebound” R&D development firm for more than one client who thought they would save money with a low fixed-rate bid. They found they simply traded a lower up-front cost for a much longer development cycle.
What are some of the issues inherent in the low fixed-rate bid?
Adversarial mindset. With fixed-rate bidding, someone is going to be the loser, either the client or the contractor. The incentive for the contractor is to keep project time as low as possible – while the client wants speed, innovation and quality.
Less flexibility. How fine-tuned are your product development requirements? If you are developing a new and unique product, you likely do not have a clear picture yet of your requirements. With a fixed-rate bid, any changes to your initial requirements will cost either more time or more money … or both.
Lost opportunities. The time contraints inherent in fixed-rate bidding shuts down innovation. Your great new idea is moved into an assembly line development system. When the focus is on spending as little time as possible on development, opportunities for true innovation are missed.
Consider the hidden costs before you jump on that cheap fixed-rate bid. Especially with a complex project, an experienced team like REV.1 Engineering’s can deliver results within a time-cost range. This allows for improvements, design tweaks, and project acceleration, and puts you in total control of your product without losing time.