The verdict in three sentences
Fixed price suits projects with a stable, documented scope: you pay a 15 to 25% risk margin, but the price is locked and overruns are borne by the vendor. Time and materials looks cheaper on paper, at around 450 to 650 EUR per day for a senior freelancer (roughly 650 to 950 USD in Toronto), but every day of overrun is on you. On an 80-day project, a 25% overrun, common for business applications, is enough to make time and materials more expensive than fixed price.
2026 price benchmarks
Rates in major tech hubs such as Toronto, Toulouse or Lyon sit in similar bands once converted, slightly below Paris or New York. Here are the ranges observed for an experienced full-stack developer.
| Buying model | 2026 rate | What is included | Overrun risk |
|---|---|---|---|
| Junior freelancer (under 3 years) | 350 to 450 EUR/day | Development only | On you |
| Senior freelancer | 450 to 650 EUR/day | Development, technical advice | On you |
| IT consultancy, senior consultant | 550 to 800 EUR/day | Replaceable profile, framework contract | On you |
| Agency fixed price | Lump sum, implicit rate 550 to 750 EUR | Project manager, design, testing, acceptance | Borne by the agency |
| Fixed price per phase | Price per 15 to 25-day phase | Sign-off at each phase | Shared |
| Post-launch maintenance | 10 to 20% of project per year | Fixes, updates | Per contract |
These ranges are 2026 estimates. The day rate alone says nothing about final cost: under time and materials you also fund your own management time, often 1 day a week from an internal project manager.
Simulation on an 80-day project
Take a typical project: a field service and spare-parts inventory application, estimated at 80 days. The fixed-price quote is 48,000 EUR excl. tax, an implicit day rate of 600 EUR.
| Scenario | Senior freelancer at 550 EUR | Consultancy at 675 EUR | Agency fixed price |
|---|---|---|---|
| No overrun (80 days) | 44,000 EUR | 54,000 EUR | 48,000 EUR |
| 25% overrun (100 days) | 55,000 EUR | 67,500 EUR | 48,000 EUR |
| 50% overrun (120 days) | 66,000 EUR | 81,000 EUR | 48,000 EUR + possible change orders |
| Internal management (16 days at 400 EUR) | + 6,400 EUR | + 6,400 EUR | + 2,400 EUR (6 days) |
| Acceptance and testing | Often excluded | Variable | Included |
| Total cost at 25% overrun | 61,400 EUR | 73,900 EUR | 50,400 EUR |
Industry studies show that most software projects exceed their initial estimate, with 20 to 50% overruns on poorly specified business applications. Fixed price is therefore not more expensive: it makes risk visible and transfers it.
Clauses that make the difference
Whatever the model, four clauses protect the buyer: assignment of rights to the source code with access to the Git repository, a signed acceptance test plan with measurable criteria, a warranty period of 3 to 6 months after delivery, and a priced change order procedure for out-of-scope requests. Without an acceptance plan, a fixed price can also slide into a dispute.
Mini case study
Julien, operations director of a 320-employee industrial maintenance company in Toronto, compares a fixed price of 48,000 EUR excl. tax with a freelance rate of 550 EUR/day. The agency proposes 3 phases with acceptance at each step and a 6-month warranty. After the scoping workshop, 18 business rules missing from the initial estimate surface, about 20 extra days.
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Under time and materials, cost would rise to 55,000 EUR, plus 6,400 EUR of internal management, or 61,400 EUR. Under fixed price, the agency absorbs 12 days in its margin and bills an 8-day change order at 600 EUR, for 52,800 EUR in total. Julien saves 8,600 EUR and keeps a contractual delivery date.
FAQ
When is time and materials the better choice?
When the need is exploratory or evolving, such as a product still searching for its market, or when you have an internal technical project manager. It also suits ongoing maintenance beyond 5 to 10 days a month.
Why does a fixed price often look more expensive on the quote?
Because it includes a 15 to 25% risk margin, project management, testing and acceptance. Compare full costs at equal overrun, not day rates.
Can both models be combined?
Yes, a common pattern is to buy scoping and the first release at fixed price, then enhancements on time and materials at 10 to 20 days per quarter. That limits initial risk without freezing the product.
Who owns the code under time and materials?
Not automatically you: without a written assignment clause, the developer may retain copyright. Require assignment and repository access from day one, under either model.
How do we stop a fixed price turning into a dispute?
Sign an acceptance test plan with measurable criteria and split the project into phases of 15 to 25 days. Each approved phase reduces the risk of disagreement at the end.
Let's scope your project. Send us your requirements or the quotes you received: we scope your business application, price a phased fixed price with acceptance plan and warranty, and compare the full cost with time and materials. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
