Pricing / By Techrays Labs / Published 29 Oct 2026

What does fixed-price software development actually mean?

Fixed-price software development means scope, price and delivery date are agreed in writing before work starts. Here is how it works and when it fits.

Fixed-price software development means the scope, the price and the delivery date are agreed in writing before any code is written. If the team misjudges the effort, that cost is theirs, not yours.

How is it different from time and materials?

Time and materialsFixed price
CostGrows with every delayAgreed up front
ScopeDrifts without a price tagWritten down, changes are quoted
Estimation riskYou carry itWe carry it
PaymentsHourly or monthly invoicesMilestones tied to working software

Our pricing page compares the two models in more detail.

How does a fixed-price project run?

  1. Scoping call. A free 30-minute call to understand goals, users and constraints.
  2. Scoped proposal. Features, architecture and risks written down and reviewed with you.
  3. Fixed price and plan. A milestone plan, a delivery date and a single price.
  4. Build. Weekly demos of working software, then launch with 30 days of support.

The full process is on how we work.

What happens when requirements change?

Change is normal. Each change is written up and quoted before work on it starts. You approve the price and the date impact, so the original price never moves silently.

When does fixed price fit?

It fits when you can describe what you want built: an MVP, a defined integration, a platform with known modules. It fits less well for open-ended research or products whose direction changes weekly. For those, an AI-augmented team billed monthly, with two weeks notice to cancel, is usually the better model.

What do you own at the end?

Code, IP and infrastructure are 100% yours from day one, with repositories and cloud accounts in your name.

FAQ

Does fixed price mean no flexibility?

No. It means changes are priced before they happen, so you decide with the full picture.

Who carries the risk if the estimate is wrong?

We do. That is the point of fixing the price.

What is the lowest starting price?

MVP Sprints start from $6k. See how much an MVP costs.

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