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Fixed price vs Time & Materials: which pricing model to choose

December 31, 20256 min read
Author: 7kar7son7Developer

When fixed price works, when T&M is safer, and how to scope to avoid conflict.

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STAMP: VERIFIED_BY_DS_

TL;DR

  • fixed price vs time and materials
  • For businesses buying a website, app or MVP.

Who this is for

  • For businesses buying a website, app or MVP.

Keyword (SEO)

  • fixed price vs time and materials

Fixed price – when

  • Scope is clear
  • Low uncertainty
  • Acceptance criteria defined

T&M – when

  • Unclear scope
  • Iterations and experiments
  • Sprint delivery

How to de-risk

  • SoW + backlog
  • Change requests
  • Clear definition of done

Want this implemented for your business?

About the author

Developer at DevStudio.it. Focused on performance, SEO and production-ready web apps.

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