Fixed-Scope vs Hourly AI Development:
AI Development
Complete engagement model comparison: Fixed Scope vs Time and Materials. When to choose each, how to structure contracts, why fixed scope works better for MVPs, and when T&M is more cost-effective.
Pricing Model Comparison
Three pricing models. One clearly superior for AI projects.
| Factor | Hourly Billing | Fixed-Scope | Retainer |
|---|---|---|---|
| Cost Predictability | ✗ Unpredictable | ✓ Fixed price | ✓ Fixed monthly |
| Speed Incentive | ✗ None | ✓ Maximum | ~ Moderate |
| Quality Focus | ✗ Billable hours | ✓ Outcomes | ~ Ongoing relationship |
| Client Risk | ✗ High | ✓ Low | ~ Medium |
| Scope Creep | ✗ Common | ✓ Controlled | ~ Managed |
| Transparency | ✗ Low | ✓ High | ~ Medium |
The Problem with Hourly Billing
Each model has implications for your project.
The Hourly Trap
When you bill by the hour, the incentive is to work slow. More hours = more revenue. The client pays for time, not results. No motivation to be efficient.
Fixed-Scope Benefits
Fixed price, defined scope, clear timeline. The team wants to deliver fast and well so they can work on the next project. Aligned incentives.
Retainer Model
Fixed monthly fee for continuous iteration. Ideal for evolving projects that need constant improvement. Long-term cost predictability.
Why We Choose Fixed-Scope
Because it aligns our incentives with yours. We want to deliver fast, well, and at the agreed price. No surprises, no inflated billing.
How Our Process Works
Three steps to get a fixed quote and start building.
Scope Definition
We work together to define exactly what will be built, what is included and what is not.
Fixed-Price Quote
You receive a detailed quote with fixed price, timeline, and clear deliverables. No surprises.
Sprint Delivery
We build in 2-4 week sprints with weekly demos. Transparent progress, measurable results.
Sprint Sizes
Every sprint has a fixed price. You choose the right size for your project.
Small Sprint
Prototype or single feature
2-3 weeks. MVP, prototype, or single AI feature.
Medium Sprint
Full system
3-4 weeks. Full system with multiple integrations.
Large Sprint
Ambitious project
4-8 weeks. Large project with dedicated team.
Retainer
Ongoing iteration
Fixed monthly fee for continuous iteration and support.
Frequently Asked Questions
How does the fixed-scope model work?
We define the exact scope of the sprint before starting. You get a proposal with deliverables, timeline, and fixed price. If we don't deliver, you don't pay. No surprises, no inflated billing.
What happens if I need changes during the sprint?
Minor adjustments are handled at no cost. Significant scope changes are managed via change request with transparent pricing. You approve before we build.
Why is fixed scope better than hourly billing?
Hourly billing creates a perverse incentive: the slower they work, the more they earn. Fixed scope aligns us with your goals: we want to deliver fast and well so we can work on the next project.
How much does a typical sprint cost?
Small sprints from $8,000. Medium from $15,000. Large from $30,000. Price is determined by scope, not hours. You get a fixed quote before we start.
How quickly can I see results?
Within 2-4 weeks you will have a functional system. Our sprints are short by design: measurable progress every week with live demos.
What is included in each sprint?
Source code, documentation, deployment, testing, and 30 days of post-sprint support. You own everything. No lock-in, no dependency.
Can I switch models after a sprint?
Yes. You can continue with another sprint, switch to a monthly retainer, or leave. No long-term contracts. The value of a sprint speaks for itself.
How do you handle scalability?
Every sprint is designed with scalability in mind. If your project grows, we scale the team or add additional sprints. No fixed cost that keeps you overpaying.
Ready to Get a Fixed Quote?
Request a fixed-scope quote. We will show you exactly what you get for a fixed price, no surprises.
Request a Quote