Fixed Price vs Time and Materials
How a project is priced shapes how it is run, so it is worth understanding the two main models we offer. Each suits different kinds of work, and we will always recommend the one that gives you the best balance of certainty and flexibility.
Neither model is inherently better; the right choice depends on how well-defined your requirements are and how much you expect them to evolve as you go.
How Each Model Works
The key difference is who carries the risk of the unknown and how much room there is to adapt.
- Fixed price: an agreed sum for a tightly defined scope, best when requirements are clear.
- Time and materials: you pay for the effort spent, best when scope will evolve.
- Hybrid: a fixed discovery phase followed by flexible delivery -- often the sweet spot.
Choosing the Right Fit
We talk this through with you at the proposal stage so the commercial model matches the nature of the work.
- Pick fixed price when you need budget certainty and scope is stable.
- Pick time and materials when flexibility matters more than a fixed total.
- Revisit the choice if the project changes character.
| Model | Best when | You get |
|---|---|---|
| Fixed price | Scope is clear | Budget certainty |
| Time & materials | Scope will evolve | Maximum flexibility |
| Hybrid | Some unknowns | A bit of both |
If you need a hand with any of this, your Progressive Robot delivery team is ready to help. Raise a ticket from the Support area of your client portal or speak to your account manager and we will guide you through the next steps.