Fixed price or time and materials: how to pay for software projects
The main ways agencies charge for websites and apps, and which works best for different types of projects.
EvoAstra team14 Nov 2026 · 3 min read- Fixed price suits well-defined projects
- Time and materials suits evolving products
- Phased fixed-price projects combine predictability and flexibility
When you hire a team to build a website or app, you will usually see one of a few pricing models. Each has strengths, and the right one depends on how clear your requirements are.
- Known cost upfront
- Clear scope needed
- Changes need new quotes
- Pay for actual work
- Flexible scope
- Needs trust and tracking
Fixed price
You agree on a scope and a price. This works well when requirements are clear, such as a company website or a defined set of features. Changes outside the scope are quoted separately.
Time and materials
You pay for the time spent, often with regular reports. This suits products that will evolve as you learn from users, but requires trust, transparency and regular reviews.
Retainers
A monthly fee for a set amount of work or ongoing support. Common for maintenance, marketing and continuous improvement.
- 1Discovery
- 2Fixed-price first version
- 3Launch
- 4Monthly improvements
- 5Next phase quoted
Phased projects
Many businesses do well with a fixed-price first version, followed by monthly improvements or further fixed phases. You get predictability early and flexibility later.
- Written scope or goals
- Payment milestones
- Change process
- Ownership terms
- Support after launch
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