Fixed price
Best when you know exactly what to build. Specs, wireframes, and a detailed task breakdown produce a clear budget and milestones before work begins.
Pros
- +See upfront exactly what you get and how it will work
- +Budget accurately and set deadlines, incentives, or penalties
- +Take preparation docs to seek competing quotes if needed
- +Underestimates are our problem, not yours
Cons
- -Mid-project changes need a formal estimate and added cost
- -Teams may delay useful changes to avoid change requests
- -A margin for uncertainty is built into the budget
- -Planning takes time before build can start