Why we offer fixed prices on custom projects
Many agencies say it is impossible. We do it every day. Here is how.
TL;DR
Fixed pricing on custom projects requires three things: a thorough pre-project that sets scope, clear acceptance criteria per milestone, and changes along the way handled as open additional orders. It requires discipline, but gives the client predictability and gives us better projects.
Why fixed pricing is rare in the industry
Most agencies use time-and-materials billing on custom projects. The justification is always the same: "it is impossible to estimate something we have never done before". That sounds reasonable, but it is not entirely true.
What is impossible is offering a fixed price without preparation. With the right pre-project it is entirely possible, and better for both the client and for us.
What we have learned
After many custom projects on fixed prices, we know three things:
- The pre-project must be genuine. Not a one-hour call with the client, but one to two weeks of real work covering scope, sketches, data model and technical clarifications.
- Clear acceptance criteria per milestone. Each milestone must have a concrete definition of "done" that both parties have signed off on.
- Changes are handled as open additional orders. When the client wants something new, we provide a clear price and scope for the change, and the order belongs to the client.
What it means for the client
Fixed pricing is not cheaper than time-and-materials. It is more predictable. You know what you pay, and you know what you get. That is significant value for most organisations, particularly those who need to justify budgets to boards and finance teams.
What it requires of us
We must be disciplined:
- Not accept projects where the scope is too vague
- Not give a price before we have done the pre-project
- Not give in to "can you just add this?", we write an additional order
That sounds rigid, but in practice it makes the collaboration better. Both parties know where they stand.
Have a chat with us.
We reply personally, often the same day. Call or send an e-mail, and we will find out whether we are the right match for your project.
