All You Need to Know About Fixed-Price Software Development Projects
Imagine you have an idea to build a fitness app or an internal tool for your organization to track your employees’ performance. Where do you start? Do you have a rough ballpark of how much you want to spend? If you’re still not sure, then you’ve come to the right place. Our team at Ewents has worked with hundreds of companies building fixed-price software development projects from scratch; we can definitely help.
Just to clarify, a fixed-price project is simply working with a team so you hand over an idea, and they build you a finished product for a pre-agreed cost and timeline. For instance, you pay $30K to build a fitness app in 3 months.
Sounds straightforward, right? It is, but only if you know how to find the right team, and clearly articulate your business goals — which…
Not to be mean, but… What the F*#k do YOU want?
Why do you need to build code? What’s the goal? Say you want a dating app. Well at a very basic level you’ll need an app that accepts users registering, looking at other user’s profiles, and then sending a match request. There’s a million ways of accomplishing that goal, but where do you start?
The first step is always doing a requirements’ analysis, looking at the abstract goal of the system rather than getting stuck on thinking that a certain technology. During the initial discovery phase, what the devs will usually do is discuss the goal of the software, list out the functional requirements (app needs to do X), start creating a low fidelity wireframe, and then start estimating the budget and the costs. Logically, your software dev team will probably think:
- Is it worth doing fixed-price software development for this idea?
- Can we leverage no-code platforms or something that is plug and play that can be tweaked just a little to work?
With all that information at hand, then the next step is to better understand the stakeholders involved…
For larger enterprises, implementing a software system often involves navigating a more bureaucratic process. With multiple stakeholders involved in approvals and testing, it can sometimes be wiser to focus heavily on clearly defining requirements and having an exceptional product owner rather than solely prioritizing the most advanced development team.
For instance, while developers write code in virtually any industry, a product owner with deep expertise in healthcare can make a significant difference. They understand the intricacies of the field, such as compliance requirements like HIPAA, and are familiar with how industry-specific stakeholders think, make decisions, and approve new technology projects. This leads us to the next big deciding factor: budget.
No Money, No Honey.
Really important: budget is one of the main key drivers for ANY project. Our team is usually very transparent from the get-go and can typically give you a rough ballpark of how much something will cost from the initial sales call. Transparency is crucial here — as our Co-Founder Matias Jacob puts it: “We’ll tell you upfront: This will cost $25k. Do you have the budget?”
Sometimes people underestimate how costly building software can be. A common reaction being, “You spent $10,000 of my money just to code a screen with a few buttons?” Well, yes, that’s what the user sees on the surface. But behind the scenes, there’s server communication, countless hours of UX/UI design, setting up cloud storage, configuring DevOps pipelines, QA testing, and numerous other processes—all to ensure that button click actually does X.
So, before writing a single line of code, our team suggests to start with UX/UI prototyping. It’s cheaper, faster, and easier:
- You Save Time and Money with Prototypes
Changing designs is way easier—and about 10x cheaper—than changing code. That’s why we start by creating a “replica” or prototype of your software. This lets you test it with users early on, gather feedback, and make adjustments before diving into development, saving you from costly headaches later. - You Can Raise Funds Quicker
Instead of spending $40k on full app development right away, you can start with a $5-8k investment in a polished Figma mockup or UX/UI wireframe. You can then show this progress to investors to raise funds instead of committing your own money out of pocket. This approach not only shows investors or internal stakeholders that you’re being resourceful, but it can also help you attract early adopters. For instance, if you’re a startup, you could create a simple landing page featuring a demo of the wireframe and offer users the chance to join a waitlist with exclusive benefits for a $19.99 deposit — getting users and cashflow.
Got the app idea ready. Can you build it for me?
Yes, we can. And better yet — while some development teams simply write code and hand you the invoice, the best software development teams like Ewents will always go a step further to become a true tech partner:
We challenge your assumptions: How will you onboard users? What’s your marketing strategy?
We think beyond code: What happens if the product doesn’t get enough traction? How can we pivot?
We deliver value, not just features: Is there a cheaper, faster way to solve your problem?
To be honest, this spirit is something Latin American dev teams are truly great at. We’re usually very mindful about our clients’ budget, and we’re flexible when it comes to determining the best engagement strategy.
Oh, wait… did you account for any hidden costs?
A solid dev team will spell out exactly what’s included (and what isn’t) and have a plan for handling changes that pop up during the project. Plus, with fixed-price software development projects, it’s super important to clearly define what’s in scope and what’s not. For instance, some teams use formal change management systems to track and manage any tasks that fall outside the original agreement. Things that usually make costs go up include:
- Tight Deadlines
- Software Licenses
- Third-Party Integrations
- Server and Hosting Requirements
- Specialized Expertise (E.g. web3.0, cybersecurity, healthcare).
- Compliance Requirements (HIPAA or GDPR)
- QA Testing
- Mid-Project Changes
Ensure the contract with your software vendor specifies the handling of licenses, server costs, and third-party tools, as these are frequently excluded from the base project price. Additionally, when entering a fixed-price agreement, it’s important to understand the commercial terms. For fixed-price proposals, these typically include an upfront deposit (e.g., 30% of the total project cost), installment payments tied to milestones, and a final payment upon project completion. Payments are usually due within 15 days of receiving an invoice, and late fees may apply for delays.
How Ewents Can Help You Build Fixed-Price Software Development Project
Fixed-price projects can be a great fit if you’re clear on your goals, realistic about your budget, and working with a team that genuinely cares about your success. The takeaway? Invest in the discovery phase. Iron out your requirements. And always, always ask yourself: Is coding the only way to achieve this?
At Ewents, we’ve worked with countless startups and enterprises, and one thing is always true: success comes down to smart planning and open communication. If you’re considering a fixed-price project, let’s sit down, chat about your idea, and see if we’re a good fit.
