Guide
Fixed-price vs hourly software quotes: questions to ask any Australian developer
How fixed-price and hourly software quotes really work, when each is fair, and the eight questions that protect an Australian small business before signing.
By Viva StudioPublished 3 min read
Short answer: fixed price is fairer for a build with a written scope, because the developer carries the risk of their own estimate. Hourly is fairer for open-ended work like maintenance, research or a project that genuinely can't be scoped yet. The worst option is hourly with no cap and no scope, which is how most "the website cost three times the quote" stories start.
How fixed-price quotes work
The developer reads your brief, estimates the work, adds a margin for the unknowns, and gives you one number. If they estimated badly, that's their problem. If you change the scope, that's a priced change request. The trade-off: you pay for the margin, and you need a proper brief up front, because a fixed price for a vague scope protects nobody.
Good fixed-price quotes list what's included, what's excluded, how changes are handled, what you need to supply (content, logins, images) and by when, and the payment schedule.
How hourly quotes work
You pay for time. It's transparent, flexible, and right for work that can't be predicted: fixing a legacy system, ongoing support, exploring whether an idea is feasible. The risk is entirely yours. Hourly is fair when there's a cap ("not to exceed 20 hours without your approval") and weekly reporting of hours against progress.
When each is the right call
| Situation | Fair model |
|---|---|
| New website or app with a clear brief | Fixed price |
| Ongoing maintenance and small changes | Hourly, or a monthly retainer with a cap |
| Rescuing or auditing an existing system | Hourly with a cap, then a fixed price for the fix |
| "We're not sure what we need yet" | A short paid discovery at a fixed price, then a fixed build quote |
Eight questions to ask before you sign
- Is this a fixed price? What would change it? The answer tells you whether they've understood the scope.
- What exactly is included, and what isn't? Ask for the exclusions in writing. Copywriting, photography, hosting setup, training and post-launch fixes are common gaps.
- How are changes handled and priced? Change requests are normal; unpriced ones are not.
- What do you need from me, and by when? Most delays are content delays.
- Who owns the code, design and accounts at the end? Everything in your name once the final invoice is paid.
- Can I see live sites or apps you've built, not screenshots? Click through them on your phone.
- What happens after launch if something breaks? Warranty period, response time, and the cost after that.
- If I leave you in a year, what do I take with me? The right answer is "everything".
Red flags
- A quote with a single number and no scope.
- Hourly with no cap.
- Hosting or a domain you can't take with you.
- No mention of mobile performance or page speed.
- Pressure to sign today.
What we do
We quote fixed prices after a free 30-minute call and a written brief, from A$900 for websites and A$2,500 for web apps. Changes are priced before they're built, and you own all code and accounts once the project is paid. If a project genuinely can't be scoped yet, we'll say so before quoting.
Have a quote you'd like a second opinion on? Send it over; we'll tell you what's missing, no obligation.
Frequently asked questions
Should I pay a web developer hourly or a fixed price?
For a defined project — a website, an MVP, an integration — a fixed price from a written scope protects you from overruns and makes quotes comparable. Hourly makes sense for open-ended maintenance or when you genuinely cannot describe what you want yet. A fixed price only works if the scope is written down first.
What should a software development quote include?
A quote you can rely on lists what is being built page by page or feature by feature, what is excluded, who supplies content and images, how many revision rounds are included, the timeline, the payment schedule, what happens to the code and accounts at the end, and what ongoing costs (hosting, domains, licences) you will carry.
How do I protect myself when hiring a developer?
Own everything from day one: the domain, the hosting account, the code repository and any third-party accounts should be in your name with the developer as a collaborator. Pay in milestones against delivered work, keep the scope in writing, and make sure you can log in to everything before the final payment.