Fixed Price vs Time and Materials Contracts Explained

Fixed price works when deliverables and acceptance criteria are clear before kickoff.

Time and materials works when discovery is still active and the product shape will change weekly.

Hybrids exist: fixed discovery, then fixed build; or capped T&M with weekly burn reports.

The worst deal is a fake fixed price with fuzzy scope. Ambiguity always becomes conflict.

Pick the model that matches uncertainty, then write it down so both sides stay aligned.