Business operations concept · updated August 9, 2026
Fixed Fee vs. Time and Materials
Fixed fee charges one agreed price for a defined scope, while time and materials bills for actual hours and costs incurred.
Example
A well-defined website build might be quoted as a fixed fee, while an open-ended ongoing support retainer is more often billed time and materials.
Why it matters
Fixed fee gives a client cost certainty; time and materials gives a business protection against underestimating genuinely unpredictable work.
Limits and cautions
A fixed fee quoted on an unclear scope puts the business at risk of absorbing extra work for free; the model only works with a genuinely well-defined scope.
Relevance to Stelaah
Stelaah's estimates and invoicing support both pricing models, letting the choice fit the specific engagement rather than a one-size-fits-all default.
This connection describes product intent, not a guarantee that every plan or workflow supports every related capability.