Ugitech vs Fixed-price contracts
Fixed price or time and materials?
Fixed price vs time and materials: what you are actually buying.
Fixed-price contracts feel safe because they limit financial exposure. What they actually do is transfer risk: from budget overrun to scope reduction. Understanding which risk matters more to your organisation determines which model fits.
The honest take
Fixed price does not eliminate budget risk. It converts it into scope risk. We work in time and materials because it keeps incentives aligned: we build what creates value, you pay for what gets built.
Side by side
| Criterion | Fixed-price contracts | Ugitech |
|---|---|---|
| What you pay for | A fixed scope at a fixed price | The time spent building |
| Who carries the risk | Scope: it shrinks to fit the budget | Budget, steered every sprint |
| Changes | Each change is a change request | You re-prioritise as you learn |
| Visibility | The spec signed at the start | What is built and why, sprint by sprint |
| Best for | A fully known, stable scope | A scope that will evolve as you build |
What we offer: Ugitech Services →
Fixed-price contracts: when it makes sense
- Scope is fully known and unlikely to change during delivery
- You have a regulatory or procurement requirement for a fixed budget
- The work is commodity execution with well-understood specifications
- You want contractual protection more than delivery flexibility
Ugitech: when it fits
- Scope will evolve as you learn from building, which it almost always does
- You want transparency over what is being built and why, not contractual protection
- You prefer to steer delivery based on real feedback rather than a signed spec
- You understand that a fixed price on an unknown scope means someone absorbs the uncertainty somewhere
When neither fits
- You need a small, one-time deliverable with a known scope: a fixed-price freelance job is simpler.
- You need ongoing maintenance of existing software: look at an application maintenance (TMA) contract.
Questions
What is the difference between fixed price and time and materials?
With fixed price you buy a defined scope for a set amount. With time and materials you pay for the time the team spends, and you steer what gets built.
Is fixed price safer?
It caps the budget, not the risk. If the scope was wrong, something gets cut or billed as a change request.
Why does Ugitech work in time and materials?
It keeps incentives aligned: we build what creates value, and you pay for what gets built.
Not sure which fits your situation?
We will tell you honestly if we are not the right fit.
Request a diagnostic →