Fixed price vs hourly: buying custom software without overruns
What a fixed quote needs behind it, and the warning signs in a cheap estimate.
Karan · Founder & CTO, NavikX
· 6 MIN READ
THE SHORT ANSWER
Fixed price protects you only when it's based on a written scope. Without one, a cheap fixed quote just moves the overrun into change requests.
When each model works
| Model | Works when | Risk |
|---|---|---|
| Fixed price | Scope is written and agreed | Low, if the spec is real |
| Hourly | Scope is unclear or exploratory | Budget is open-ended |
| Fixed per milestone | Large projects in phases | Lowest for both sides |
Warning signs in a cheap estimate
- A price after one call and no written requirements.
- No list of what is excluded.
- No milestone plan or acceptance criteria.
- All payment upfront.
- Vague answers about who owns the code.
What a real fixed quote needs behind it
Written features and user roles, an architecture, a prototype of key screens, and milestones with payment tied to working software. That's exactly what a Scoping Sprint produces.
FAQ
What happens when we change our mind mid-project?
Changes are quoted before they're built and added as a new milestone. No surprise invoices.
Karan Kumar Maurya · Founder & CTO, NavikX
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