Fixed-price projects
A fixed-price project has an agreed scope, timeline and price, usually paid by milestone.
- Best for: new applications and features that can be clearly defined up front.
- Benefits: budget certainty and a clear definition of what will be delivered.
- Watch out for: changes in scope, which need to be agreed and priced as they arise.
Monthly retainers
A retainer reserves a set number of hours each month for maintenance, support and ongoing improvements.
- Best for: business-critical systems that need regular care, security updates and steady enhancement.
- Benefits: priority response, continuity of knowledge and predictable monthly cost.
- Watch out for: agreeing clear priorities each month so the hours deliver the most value.
Hourly or on-demand work
Hourly work is billed for the time spent, with an estimate agreed before work starts.
- Best for: urgent fixes, investigations, audits and short, well-contained tasks.
- Benefits: no long-term commitment and a fast start.
- Watch out for: open-ended work, which is usually better handled as a fixed-scope phase or a retainer.
At a glance
| Model | Cost certainty | Flexibility | Typical use |
|---|---|---|---|
| Fixed price | High | Low to medium | New builds, defined features |
| Retainer | High, per month | High | Support, maintenance, continuous improvement |
| Hourly | Medium | High | Urgent fixes, audits, short tasks |
Combining models
Many clients use more than one model over time. A common pattern is a fixed-price project to deliver a new system, followed by a monthly retainer to support and improve it, with hourly work for anything urgent in between.
Key takeaways
- Choose fixed price when the scope is clear and budget certainty matters most.
- Choose a retainer for systems that need ongoing care and fast response.
- Use hourly work for urgent or short, well-defined tasks.