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Fixed fee versus time and materials. Which one to choose for a software development project? Hey everyone! Today were going to talk about two types of contracts in software development: fixed fee and time and materials, and which one to choose. But before we dive into the details, lets get rid of some myths. Both types of contracts may end up with budget overruns, so its not about which one is better, but which one fits your project and needs. Both of them have their own risks and opportunities, and fit different types of projects. Having that cleared up, lets dive in into pointing out the key differences between both contract types. Lets start with the scope of your project. In a fixed price contract, you spend a lot of time specifying the scope of the project at the beginning. It needs to be specified in detail, since its the basis to determine your fixed price. Also, then, a development team follows this information, and changing the scope implies changes in costs. In a time a
