Fixed-Price vs. Time & Materials vs. Dedicated Dev Squads

Choosing the wrong software engagement model leads to budget blowouts or scope paralysis. Here is how senior engineering leaders choose the right model for their risk tolerance, velocity, and budget.

Evaluation Dimension	1. Fixed-Price MVP	2. Time & Materials (T&M)	3. Dedicated Dev Squad
Best For	V1 MVPs with locked specs & tight deadlines	Ongoing maintenance or unpredictable research	High-growth startups & enterprise products needing scale
Budget Predictability	100% Guaranteed cap (No surprise fees)	Variable (Billed on hours logged)	Fixed monthly retainer (Predictable OpEx)
Scope Flexibility	Strict (Change requests require re-scoping)	High (Pivot anytime)	Maximum (Direct your backlog daily in Slack)
Delivery Velocity	Fast (Milestone-based sprints)	Moderate	Fastest (Full-time dedicated team focus)
Intellectual Property	100% Transferred on delivery	100% Owned as billed	100% Owned continuously in your GitHub
CodeBuilders Support	Includes 90-day SLA bug warranty	Hourly maintenance retainer	Dedicated DevOps, QA & continuous improvements

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