What is the difference between a fixed-price and an hourly project?
When a fixed price has been agreed right from the start then this is called a fixed-price project. The provider needs to provide the agreed deliverable at this price. In contrast, only a price per hour is agreed in case of an hourly project. The total cost can thereby only be estimated at the beginning of a project as it depends on the actual hours worked. In case of fixed-price projects the complexity is typically lower and the total budget easier to estimate than for hourly projects.
