Most of our projects are done as hourly jobs because this method lends itself well to an Agile process and provides the maximum flexibility for the client. In an hourly job, we simply bill for whatever time we spend working on the project. Keep in mind that estimates for hourly jobs are just that: estimates. As you work with the Agile process and add, change or delete user stories, your budget and timeline will shift based on the additional items that you add or delete. You will receive weekly status reports with detailed budget and timeline information, which you will be asked to promptly review and approve each Monday. You should feel free to check in with the project manager any time you have questions or concerns based on the status reports. You will receive invoices every two weeks with detailed lists of user stories on them, so that will also give you information about the budget status of your project.
Fixed price jobs are appropriate when the client has very detailed requirements or a functional specification available at the beginning of the project. If the scope of the project can be clearly defined, then a fixed price may be agreed upon and that’s the amount that will be billed regardless of how many hours are actually spent on the project. Additional features or changes requested by the client that are outside the scope of the original job will be billed at an hourly rate.