Fixed Pricing
Fixed pricing is a project management and pricing methodology where the total cost for a project is agreed upon upfront and remains unchanged regardless of the actual time or resources expended. It is commonly used in software development contracts to provide budget certainty for clients and requires detailed specifications to avoid scope creep. This approach contrasts with time-and-materials pricing, where costs vary based on work done.
Developers should learn fixed pricing to effectively manage projects with clear, well-defined requirements, such as building a specific feature or delivering a minimum viable product (MVP) within a set budget. It is particularly useful for freelance work, agency projects, or when clients prioritize cost predictability over flexibility, but requires strong estimation and scope management skills to avoid losses from underestimation.