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January 2, 2024

6 min read

The Case for Fixed-Price Web Projects

Hourly billing creates misaligned incentives. Fixed-price scopes force clarity, eliminate surprises, and make everyone accountable.

Pio Greeff

Pio Greeff

Founder & Lead Developer

Deep dive article

The Problem with Hourly Billing

Hourly billing sounds fair, but it creates perverse incentives:

  • For the client: Fear of scope creep means avoiding necessary improvements
  • For the agency: Efficiency isn't rewarded — the longer it takes, the more you earn
  • For the project: Budgets become unpredictable, causing anxiety on both sides

Why Fixed-Price Works

Fixed-price scopes flip the incentives:

  1. Clarity upfront: Both parties must define success before starting
  2. Efficiency rewarded: Finishing faster means higher effective hourly rate
  3. Budget certainty: Clients know exactly what they're investing
  4. Accountability: Scope is defined, so everyone knows what's included

How to Make It Work

Fixed-price isn't magic — it requires discipline:

Discovery is non-negotiable: You can't quote accurately without understanding the problem. Invest time upfront.

Scope must be specific: "Build a website" isn't a scope. "6-page marketing site with X, Y, Z features" is a scope.

Change orders are explicit: New requests = new scope = new quote. No silent creep.

Buffers are built in: Experienced teams know where projects get complicated and price accordingly.

The Trust Factor

Fixed-price requires trust on both sides. The client trusts you'll deliver quality, not cut corners. You trust they'll respect the scope and pay on time.

It's a more honest relationship.

When Hourly Makes Sense

Hourly billing still works for:

  • Ongoing maintenance and support
  • Projects with genuinely undefined scope (rare)
  • Advisory/consulting work

But for discrete projects with clear deliverables? Fixed-price wins.

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