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Software Development Contracts: Fixed-Price vs. Time-and-Materials

Written by Krzysztof Karolczak | Aug 16, 2018 10:30:00 AM

What kind of contract should you sign when you decide to work with a software house?

You don’t want the formalities of your development contract to tie you down. There’s nothing worse than work grinding to a halt to make room for “renegotiations.”

It would serve you better to have a flexible deal that gives you freedom to direct development as you see fit. An arrangement that keeps you nimble.

To delve deeper into the subject of software contracts, I picked the brain of Krzysztof Karolczak, Head of Service Delivery at STX Next. He helped me understand the differences between fixed-price and time-and-materials contracts.

We also used Krzysztof’s expertise in our comprehensive resource on outsourcing software development. Head over there if your eyes are set on the bigger picture. Meanwhile, here’s what you need to know about the two types of contracts.