Sharing risk
Software development is a process of discovery. At the start of an engagement we understand the problem less well than we will after building something and watching the client use it. The traditional ways of buying software each put that risk on one side.
Both sides lock in assumptions before anyone has learned anything. The result is change orders, disputes, or a product nobody needed.
The meter keeps running whether or not the work is going well.
The block size caps what the client invests, and short iterations cap how long we go before reconsidering the direction.
Who carries what
In practice, each side carries a defined part of the risk:
- The client risks only the block they bought. They are not charged more when a problem takes longer than expected.
- Exalynt carries the variance inside the block. If the work needs more investigation or debugging than planned, the price does not change. We absorb the overrun.
- Exalynt keeps the benefit of efficiency. We are not paid less because experience, tooling, or reusable IP let us solve something quickly. Speed that comes from real expertise is rewarded, not penalized.
- The client can stop after any iteration and keep everything built so far. There is no lock-in.
We don't reduce risk by predicting the future. We reduce it by limiting the size of the bet. The client controls the investment, Exalynt owns the execution, and together we decide what happens next.
Why this model rewards value and quality
The block model only produces revenue if clients keep choosing to buy another block, and nothing in the contract makes them. We earn each next block by delivering value and building things well. Blocks that take longer than planned are paid for from what Exalynt retains.
See Excellence is a practice for the standard behind this, and Producing value in a block for what it means day to day.
Frequently asked questions
Does the client pay more if the work takes longer than expected?
No. Exalynt carries the variance inside a block, so the price doesn't change when a problem needs more investigation or debugging than planned.
What does Exalynt get in return for absorbing overruns?
The benefit of efficiency. Exalynt isn't paid less when experience, tooling, or reusable IP let us solve something quickly.
Why not bill hourly?
Hourly billing puts most of the risk on the client: the meter keeps running whether or not the work is going well.
Why not quote a fixed price for the whole project?
A fixed-scope quote locks both sides into assumptions before anyone has learned anything. The result is change orders, disputes, or a product nobody needed.
Can the client stop partway through?
Yes, after any iteration, and they keep everything built so far. There is no lock-in.