{"head":{"title":"Fixed Price vs Time and Materials Calculator | OceanLab","description":"Six questions to see whether a fixed price, time and materials or milestones fits your software project, with the reasons and a cost comparison.","canonical":"https://oceanlab.in/tools/fixed-vs-time-materials"},"tool":{"slug":"fixed-vs-time-materials","path":"/tools/fixed-vs-time-materials","name":"Fixed vs time and materials","h1":"Fixed price vs time and materials","lede":"Answer six questions about your project and see which contract model fits, what drove it and what it might cost.","category":"delivery","categoryTitle":"Run the project","method":["Each answer adds points to fixed price, time and materials (T&M) or milestone-based payment. The reason for each weight is shown next to the answer. A tie goes to milestones, the middle ground.","The cost comparison uses your own estimate: a fixed bid = estimate × (1 + risk premium), and expected T&M = estimate × (1 + expected overrun). Both percentages are placeholders to replace.","The weights are OceanLab's reasoning, not survey data."],"sources":[],"faq":[{"question":"When is a fixed price best?","answer":"When the scope is written down in detail, unlikely to change, and nobody on your side can steer the work week to week."},{"question":"When is time and materials best?","answer":"When priorities will change once users see the product and someone on your side can make product calls every week."},{"question":"What are milestone payments?","answer":"Payment tied to accepted pieces of working software. OceanLab offers outcome-based milestone pricing or hourly billing at $30-50 an hour, whichever suits the project."},{"question":"Is anything I enter sent anywhere?","answer":"No. The tool runs in your browser and there is no sign-up. Nothing leaves the page unless you choose to email your result to OceanLab."}],"notice":{"title":"Guidance, not a benchmark.","text":"The weights are OceanLab's reasoning, shown next to each answer."},"updatedAt":"2026-10-25"},"related":[{"href":"/tools/sow-template","label":"SOW template","detail":"Fill in a guided form and get a statement of work draft with deliverables, milestones, acceptance and payment terms."},{"href":"/tools/change-request-template","label":"Change request template","detail":"Describe the change and its impact on effort, cost and dates, and get a change request ready to approve."},{"href":"/tools/project-timeline-estimator","label":"Project timeline estimator","detail":"Give best, likely and worst-case weeks for each phase and get an expected finish date and a safer one to promise."}],"studies":[{"meta":{"slug":"setback","industry":"govtech","projectType":"Permits & licences","country":"us","tags":["enterprise"],"compliances":["IBC and IRC","IFC","IECC","NEC (NFPA 70)","ADA Title II","WCAG 2.1 AA","Section 508","Title VI language access","PCI DSS"],"cover":{"src":"/case-studies/setback/01-home.png","width":1440,"height":1000}},"text":{"en":{"title":"Setback - Permitting and Licensing Platform with Parallel Plan Review","description":"Designed and built a clickable permitting and licensing platform for a US city's development services department: completeness checks before the review clock starts, building, zoning, fire and public works reviews running in parallel against city targets, an inspection board that checks certifications, and one record for every permit with its parcel, parties, holds, fees and inspections.","category":"GovTech / Permits & Licences","client":"City of Wrenfield Falls Development Services Department"}}},{"meta":{"slug":"kasupe","industry":"energy","projectType":"Utility customer portal","country":"zm","tags":["energy","enterprise"],"compliances":["Data Protection Act 2021 (Zambia)","ERB tariff approvals","NWASCO tariff approvals","ERB and NWASCO customer service guidelines","STS (IEC 62055-41)","Bank of Zambia payment systems rules"],"cover":{"src":"/case-studies/kasupe/01-home.png","width":1440,"height":1000}},"text":{"en":{"title":"Kasupe - Utility Customer Portal and Service Console with Safeguarded Disconnections","description":"Designed and built a clickable staff service console for a Lusaka water and electricity utility: one queue for faults, leaks and billing queries with live SLA status, a customer 360 for every account, and disconnection batches that check every safeguard before a crew is sent.","category":"Energy / Utility Customer Portal","client":"Lwimba Hill Water and Power"}}},{"meta":{"slug":"lendwell","industry":"banking","projectType":"SME loan origination","country":"gb","tags":["fintech","saas","enterprise"],"compliances":["Consumer Credit Act","MLR 2017","UK sanctions (OFSI)","UK GDPR"],"cover":{"src":"/case-studies/lendwell/01-home.png","width":1440,"height":1000}},"text":{"en":{"title":"Lendwell - SME Loan Origination from Application to Funded","description":"A loan origination platform for Harbour Capital, a UK digital lender offering £25,000 to £500,000 term loans to small businesses - one workspace for applications, KYB and KYC, open banking and bureau data, underwriting, credit committee, offers and funding.","category":"Banking / SME Lending","client":"Harbour Capital"}}},{"meta":{"slug":"dawuro","industry":"internal","projectType":"Approval workflow engine","country":"gh","tags":["enterprise"],"compliances":["Data Protection Act, 2012 (Act 843)","Public Procurement Act (Act 663, as amended)","L.I. 2516 procurement thresholds","Public Financial Management Act, 2016 (Act 921)","Electronic Transactions Act, 2008 (Act 772)","Right to Information Act, 2019 (Act 989)"],"cover":{"src":"/case-studies/dawuro/01-home.png","width":1440,"height":1000}},"text":{"en":{"title":"Dawuro - Approval Workflow Engine for a Ghanaian Public University","description":"Designed and built a clickable approval workflow engine for a public university in Accra: request forms routed by amount, cost centre and the department hierarchy, an approvals inbox and two-tap decision screen designed phone first, delegation and out-of-office cover, and a route and history on every request that shows who approved what, and when.","category":"Internal Tools / Approval Workflows","client":"Kpeshie Ridge University"}}}],"more":[{"href":"/case-studies","label":"All case studies","detail":"Every OceanLab product build."},{"href":"/ai-automation","label":"AI automation","detail":"AI built into real business workflows, with people in charge."}],"today":"2026-10-25"}