Fixed price vs. time & material: which model is right for your project?
Both models have their place. The wrong choice can derail a project before a line of code is written.
By Oneminded
When fixed price works
Fixed price is ideal when you have clear requirements, a well-defined scope, and limited need for iteration. Think: a marketing website, a data migration, or a well-documented API integration. The key is that both parties agree on what 'done' looks like before work begins.
When time & material wins
For complex products where requirements evolve, time & material gives you the flexibility to learn and adapt. You're not locked into a scope that made sense three months ago but doesn't reflect what you've learned since. Most of our long-term client relationships operate on this model.
Making the right choice
The honest answer is that it depends. We help every client choose the model that fits their situation, and we're transparent about the tradeoffs. Sometimes we even start with fixed price for the first phase and switch to T&M once we've built trust and the project naturally evolves.