Guide by Jasper Tham · Updated 23 October 2026 · 5 min read
Fixed price vs hourly: how to pay for web development
How you pay a development team shapes the whole project: who carries the risk, how changes are handled, and how often you argue about scope. Here is how the two common models work and when each one fits.
How a fixed-price contract works
The team agrees a written scope and a price for it. If the work takes longer than planned, that is their problem, not yours. The trade-off is flexibility: anything outside the scope is a change request with its own price. Teams also build some margin into a fixed price to cover the risk they are taking.
How a time-based contract works
You pay for the hours or days worked, usually against a regular report or demo. You can reprioritise at any time, which suits products where you learn as you go. The risk moves to you: if the work takes longer, it costs more. A weekly or fortnightly cap keeps that risk bounded.
Which one fits your project
- Business website, landing pages or a defined feature: fixed price
- New software product or a minimum viable product (MVP): time-based, in short sprints
- Ongoing improvements after launch: a monthly retainer or time-based with a cap
- Unclear requirements: a small paid discovery phase first, then a fixed price for the build
Protect yourself on either model
The payment model matters less than the safeguards around it. Tie payments to milestones you can see working, not to dates. Keep the code repository, domain and cloud accounts in your company's name from day one. Agree in writing how changes are requested and priced, and how either side can end the contract and hand over the work.
How Cassnetic Tech prices work
Websites and defined features are fixed-price: we write the scope, confirm the price before starting, and quote extra features separately. Larger products start with the smallest useful version, with a fixed scope and price, shipped in short cycles you can try in a browser. Either way, you own the code and the domain.
Frequently asked questions
Is a fixed price always cheaper?
Not always. Teams add margin to cover the risk of overruns, so a well-run time-based project can cost less. A fixed price buys certainty, not necessarily a lower total.
What is a discovery phase?
A short paid piece of work that turns an unclear idea into a written scope, so the build itself can be priced and planned with confidence.