Time and Material vs Fixed Price: Which Model is Right for Your Project?

When starting a software development project, one of the most important decisions you'll make is choosing the right pricing model. The two most common options are Time and Material (T&M) and Fixed Price. Each model has its own advantages, and the best choice depends on the scope, flexibility, and complexity of your project.

At Saigon Technology, we’ve worked with hundreds of global clients across industries and have seen first-hand how the right pricing model can determine project success.

Time and Material: Flexibility First

The T&M model charges based on actual work hours and materials used. It’s ideal for projects with evolving requirements or when clients want to remain actively involved in development. This model offers:

Greater flexibility for changes
Transparent progress tracking
Ideal for Agile development or MVPs

At Saigon Technology, we often recommend T&M for long-term projects or startups looking to iterate quickly based on feedback.

Fixed Price: Predictability and Control

With Fixed Price, the budget, timeline, and scope are agreed upon from the start. It’s best for clearly defined projects where changes are unlikely. This model offers:

Clear budget and timeline expectations

Minimal involvement once development starts

Suitable for short-term or low-complexity tasks

Many of our enterprise clients choose Fixed Price for smaller modules or pilot projects with strict deadlines.

So, Which Should You Choose?

If your project is dynamic, and you value flexibility, T&M may be the better fit. If you need a predictable budget and timeline with minimal management, Fixed Price could be the way to go.

At Saigon Technology, our team of experts can guide you through the decision-making process, ensuring the model aligns with your goals. We offer tailored solutions to fit your business needs—whether you're building a complex web platform or launching a simple mobile app.