How do I negotiate a fixed price contract with a dev agency?
Short answer
Negotiate the scope and the terms, not the number. The price of a fixed price project is a function of what is in the scope document, so the way to pay less is to build less. The terms worth negotiating are payment timing, acceptance criteria, the change process, ownership and what happens if delivery is late.
By Kailesk Khumar, founder of HouseofMVPs. Last reviewed .
What to negotiate, in order of value
| Term | What to ask for | Why it matters |
|---|---|---|
| Scope | Remove features until only the core flow remains | It is the only real lever on price |
| Payment timing | A meaningful share due on delivery | Keeps the agency motivated to finish |
| Acceptance criteria | A test for every feature | Defines done, and prevents disputes |
| Early visibility | A staging link partway through | Lets you catch problems while they are cheap |
| Change process | Written quote, approved before work | No surprises on the invoice |
| Ownership | Code assigned to you, repository in your account | You can leave with what you paid for |
| Support | A stated period after launch | Bugs found in week one are fixed without a new invoice |
What not to push on
Pushing the price down while keeping the scope the same does not make the work cheaper. It removes the agency's margin for doing it properly, and you find out where the saving came from after launch.
Asking for a penalty clause for late delivery rarely works either. Payment on delivery achieves the same thing without a negotiation.
A simple way to run the conversation
- Ask for the scope and price in writing first.
- Mark each feature as needed for the first test, or later.
- Ask for a revised price with only the first group.
- Then agree the terms in the table above.
- Have a lawyer read the final contract before you sign.
How HouseofMVPs handles this
Our prices are public and the same for every client, so there is nothing to haggle over: $3,999, $7,499 or from $14,999 depending on scope. The terms most founders negotiate for are already standard: 50% on delivery, acceptance criteria in the scope document, a staging link by day 5, written change quotes, the repository in your account and 30 days of support.
Get a written scope and fixed priceRelated questions
Can I negotiate a lower fixed price?
You can lower it by reducing scope. A discount on the same scope is possible with some agencies, but be clear about what gives: usually testing, polish or support.
What payment split is normal for fixed price development?
Splits vary. A common structure is part at signature and the remainder on delivery or at milestones. What matters is that a real share of the fee depends on the product being delivered.
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