Fixed Pay
Fixed Pay is a compensation model in software development where a project is priced at a predetermined, fixed amount, regardless of the actual time or resources expended. It involves agreeing on a set scope, timeline, and budget upfront, with the payment tied to the delivery of specified deliverables. This approach contrasts with time-and-materials billing, where costs vary based on hours worked.
Developers and teams should use Fixed Pay when project requirements are well-defined, stable, and unlikely to change, as it provides cost certainty for clients and incentivizes efficiency. It is suitable for small to medium-sized projects with clear specifications, such as building a simple website or a mobile app with predefined features, where scope creep is minimal. However, it requires thorough planning and risk management to avoid overruns due to unforeseen complexities.