Project Based Agreements
Project Based Agreements (PBAs) are contractual frameworks used in software development and IT projects to define the scope, deliverables, timelines, and payment terms for project-based work, rather than hourly or retainer models. They establish clear expectations between clients and development teams, often including milestones, acceptance criteria, and change management processes. This approach helps mitigate risks, control costs, and align incentives for successful project completion.
Developers should understand PBAs when working in consulting, freelance, or agency environments to ensure fair compensation and clear project boundaries, especially for fixed-scope engagements like building a custom web application or implementing a software system. They are crucial for managing client expectations, avoiding scope creep, and structuring payments based on deliverables rather than time spent, which benefits both parties in predictable budgeting and accountability.