Business
Fixed Price vs Time & Materials: Which Contract Fits
The trade-offs behind the two most common engagement models, and how to pick the right one.
By Priya SharmaMay 8, 20256 min read
The contract model you choose shapes how a project actually runs. Neither is universally better; each fits a different situation.
Fixed price suits clear scope
When requirements are well-defined and stable, a fixed price gives you budget certainty and shifts delivery risk to the vendor. The trade-off is less flexibility mid-flight.
Time and materials suits discovery
When you're still learning what to build, T&M lets you adapt sprint to sprint. It demands more trust and involvement but rewards you with flexibility.
How we work
We quote fixed-scope phases against written specs, so you get budget certainty without locking the whole roadmap on day one.
