Which engagement model is cheapest?

It depends on the project. Fixed price includes a margin for risk; time and materials can cost less when priorities are managed well. We recommend the model that gives the best value for your situation.

Can we start small before committing?

Yes. A short paid discovery or a small first milestone is a good way to test how we work together.

You do. IP ownership transfers to you under the agreement once the related invoices are paid, and you have repository access throughout.

Can we change models mid-project?

Yes. We can move from fixed price to time and materials or to a dedicated team with a simple contract update.

Software Development Engagement Models

Choosing a software development engagement model

The right engagement model depends on three things: how clearly the scope is defined, how much control you want over day-to-day priorities, and whether you have your own technical leadership. There is no single best model. Many clients start with one and move to another as the product matures, and we make that transition straightforward.

The four models at a glance

	Fixed price	Time & materials	Dedicated team	Staff augmentation
Scope	Defined up front	Evolves with priorities	Ongoing product roadmap	Set by your team
Who manages work	We do	Shared	We coordinate; you prioritise	You do
Pricing	Agreed total per milestone	Hours or days worked	Monthly per team	Monthly per engineer
Flexibility	Changes via change requests	High	High	High
Best for	Well-defined projects	MVPs and evolving products	Long-term product development	Filling skill or capacity gaps

Fixed price

We agree the scope, deliverables, timeline and price before development starts. This suits projects that are well understood — often after a short paid discovery phase that produces detailed requirements and designs. You get budget certainty; in return, changes go through a simple change-request process with their own estimate and approval.

Clear, stable requirements
A fixed budget approval in your organisation
Projects with a defined end point

Time and materials

You pay for the time actually spent, reported transparently each week or sprint. Priorities can change every sprint without renegotiating a contract. Budget stays under control through a backlog you prioritise, sprint goals, and regular reports comparing progress with spend. It is the most common model for MVPs and products where learning from users shapes what comes next.

Scope that will evolve
You want to be closely involved in priorities
Speed matters more than a fixed upfront quote

Dedicated team

A stable, cross-functional team — developers, QA and, as needed, design and DevOps — works only on your product, month after month. The team builds deep knowledge of your business and code, and we handle coordination, delivery practices and replacements, while you set the direction. Learn more about a dedicated development team.

Staff augmentation

Individual engineers join your existing team, follow your processes and report to your leads. It is the quickest way to add a specific skill or extra capacity when you already have engineering management in place. See IT staff augmentation and our guide to outsourcing vs staff augmentation.

Switching between models

Projects change, and contracts should allow for that. A common path is a fixed-price discovery, followed by time-and-materials development for the MVP, then a dedicated team once the product has users and a steady roadmap. Because every model uses the same repositories, documentation and delivery practices, switching changes the commercial terms, not the team or the way work gets done.

How to choose: three quick questions

How clear is the scope?

Clear and stable points to fixed price; evolving points to time and materials or a dedicated team.
Do you have technical leadership?

If yes, staff augmentation can work well; if not, choose a model where we manage delivery.
How long will the work last?

A defined project suits fixed price or time and materials; a long-term roadmap suits a dedicated team.

What our contracts include

IP ownership — you own the code, designs and documentation we create for you once the related invoices are paid.
Confidentiality — a mutual NDA before you share sensitive details, and confidentiality obligations in the main agreement.
Payment terms — milestone payments for fixed price; monthly or bi-weekly invoices for time and materials, dedicated teams and augmentation.
Access from day one — code in repositories you own or can access at any time.
Data protection — security and data-handling terms appropriate to your industry.
Exit and handover — reasonable notice periods and a documented handover if you move work in-house.

Read how projects run day to day on our process page, and how we produce estimates in our software project estimation guide. When you are ready, tell us about your project and we will recommend a model.