When you commission a website, an extension or software, you usually get one of two offers: a fixed price or billing by effort (time and materials). Both are fair – if they fit the project.
Fixed price
You agree in advance what is delivered and what it costs. You know the amount from the start; in return, the scope has to be clear up front, changes are usually charged separately, and providers price in some risk.
Billing by effort
You pay for the time actually worked at an agreed hourly or daily rate. Work can start quickly and priorities can change along the way – but the final amount is open, so the model needs trust, an estimate up front and transparent invoices.
Which fits what?
- New website or relaunch: usually a fixed price.
- Changes to an existing website, bug hunting: usually by effort.
- Custom software or developing existing applications: often by effort; clearly defined parts can be fixed-price.
- AI and automation: often a small test by effort, then a fixed price for the implementation.
What to check in a quote
- Fixed price: is the scope described in writing? How are changes charged?
- By effort: what is the rate, is there an estimate, and will you be told before it is clearly exceeded?
- Are invoices itemised? Are travel, licences and third-party costs included?
- Do you get access, content and – for software – the source code?
How I handle it
New websites come as fixed-price packages (see web design Giengen). Changes to existing sites, software development and AI automation I take on as a freelancer billed by effort, with an estimate before I start.