A fixed price contract is a fundamental payment model in freelancing. It means you and your client agree on one set fee for an entire project.
What is Fixed price?
Fixed price is a payment agreement where a freelancer charges a single, predetermined fee for a complete project or a well-defined scope of work. The total cost is set before any work begins, regardless of the actual hours spent. This contrasts with hourly billing, where you charge for the time you work.
Why is this important?
This model is crucial because it provides budget certainty for clients and predictable income for you. It's a common way to structure projects found via platforms or direct networking. Understanding it helps you scope work accurately and manage client expectations from the start.
How does it work?
You first define the project's deliverables, timeline, and revisions in a clear agreement. After agreeing on the price, you typically receive a portion upfront and the remainder upon completion. Payment is tied to delivering the final work, not the hours logged.
Pros and cons
The main advantages are predictable earnings and the potential for higher effective pay if you work efficiently. Key disadvantages include the risk of scope creep, where extra unpaid work is requested, and the potential for lower pay if you underestimate the time required.
Conclusion
Fixed pricing is a powerful tool for freelancers when used correctly. Its success hinges on a crystal-clear project scope and a strong contract. Mastering this model can lead to smoother projects and more satisfied clients.
Ready to freelance?
Download the HFS Freelancers app and discover flexible shifts in your area. Or explore more terms in our knowledge base.
