Why We Believe Fixed Bid Projects Should Be a Thing of the Past
At The Gnar, we're big fans of romantic comedies. Whether it's When Harry Met Sally, 10 Things I Hate About You, or 50 First Dates, we can’t get enough of those classic love stories.
But when it comes to project management, there's another "love story" we can't help but watch unfold: the ongoing debate between Fixed Bid and Time & Materials (T&M) projects. And, like the romantic comedies we adore, there’s always that moment when one of our co-founders, Mike, interrupts the screen, yelling, "Just say how you feel already!"
Mike, of course, gets frustrated by the lack of clear communication in these situations.
And while we share his exasperation, we know the feeling all too well. People often say one thing but mean another.
They say they’re happy being single, but what they really mean is they haven’t found the right person.
They say they’re ready to leave their small town, but they’re actually worried they’ll never reach their full potential.
And they say they’re undecided between fixed bid and T&M, but what they really want is predictability and accountability.
Just like those romantic plotlines, navigating the Fixed Bid vs. T&M discussion with clients can feel like trying to decode mixed signals.
Understanding Fixed Bid vs. Time & Materials
In a fixed bid engagement, the project’s price and timeline are set upfront. Both parties know exactly what to expect—but the real risk is whether the project has been scoped properly. If not, one or both parties may face unexpected challenges.
With Time & Materials, things are more flexible. While you still get an estimated timeline and budget, the specifics are subject to change. The project evolves as the work progresses, with both teams collaborating closely to make decisions on the best path forward.
Why T&M is the Better Approach
Here’s why we think Time & Materials leads to a better product:
Accountability: T&M ensures you pay only for the work that’s completed. There are no hidden line items or "blended costs"—you see exactly what you're paying for, with full transparency.
Flexibility: Software development isn’t always a linear process. Priorities shift, and new challenges arise. Fixed bid projects can struggle to accommodate these shifts, while T&M allows for adjustments to the scope, timelines, and budget.
Collaboration: With T&M, the development team and client stay in constant communication. Unlike fixed bid projects, where the team works in isolation and presents the end result, T&M fosters a collaborative, ongoing dialogue to make sure the final product meets your expectations.
However, just because T&M offers these benefits doesn’t mean it’s without its risks.
Essential Elements to Look for in a T&M Partner
If you’re considering a T&M project, it’s crucial to find a partner who meets these criteria:
Predictability: While T&M projects offer flexibility, you should still expect a clear estimate of timeline and budget. A trustworthy partner will scope the work like a fixed bid project, understanding that flexibility and speed often lead to better outcomes.
A Fully Dedicated Team: Exclusivity matters. You don’t want your developers working on multiple projects at once. For a successful T&M engagement, make sure you’re working with a dedicated team that can focus entirely on your project without distractions.
Access to Project Management Tools: Transparency is key. Your partner should be comfortable with sharing their project management tools and letting you view the progress in real-time. We use Jira, but we’re always open to using whatever tools are most convenient for our clients.
Accountability in Execution: T&M projects can lead to the best outcomes, but what happens when things go off track? Ensure your partner has policies in place for staying on target. At The Gnar, we stand by our work. If any part of your project doesn’t meet the agreed specifications, we’ll fix it at no additional cost within 12 months of project completion. We’re committed to delivering quality—and quickly. In fact, we aim to have production-ready code in the first week.
The Right Partner is Out There
Your ideal software development partner doesn’t have to be a trade-off between flexibility and predictability. You can have both—along with the accountability needed to ensure your project is a success.
And, if you’re ready to make that connection, feel free to reach out. We may not be a rom-com, but we’d love to see if something special develops between us.