[spatley]

I disagree on T&M. Billing by the hour penalizes those that have developed the patterns and skills to go faster. Fixed price is the only way to be better than the other firm and have that lead to an advantage on your bottom line.

[LaundroMat]

Seconded. T&M leads to unproductive discussions, like when you had to try out different libraries to get the job done. The client can easily ask why you didn't know library X was the best candidate before you spent time they pay for to investigate.

[chiefalchemist]

Well, if it were fixed price you'd eat that discovery, correct? T&M doesn't stop you from not billing for something.

Again, the question was: There are too many unknowns. The answer is T&M. Btw, they can be combined. Fixed price on the knowns, and T&M on the unknowns.

Put it this way, I've seen 5x more fixed price projects go sideways than T&M. That's how bespoke work works best.

[chiefalchemist]

Not really. If you're worth more you charge more. There's a reason a trans-Atlantic ticket on the Concord cost more. Hint: It wasn't because the food was better.

To get in a price battle with another bottom feeder for a project with too many unknowns (and likely a client with higher-than-budget expectations) is a classic fool's errand.

We all know the rule:

Fast. Cheap. Right. Pick two.