Software Development Engagement Models

Fixed price, time & material or a dedicated team: compare how each model works, how you pay and who leads the work. Not sure which fits? Tell us about your project and we will recommend one.

TL;DR

Intobi works in three ways. A fixed price suits a small, clearly defined scope: one price for the agreed work, and changes go through a change request. Time & material suits products whose scope is still evolving: you pay for the hours worked at the agreed rate and set priorities every sprint. A dedicated team suits long-term products: developers work only on your product and are billed monthly. Projects start at $10,000, and a dedicated team starts with one developer for two months.

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What an Engagement Model Decides

An engagement model is the way you and your development partner share control, risk and payment. It decides who leads the work, what is fixed in advance (the scope, the budget or the team) and how changes are handled.

Every model at Intobi starts the same way: a short call, then a scoped estimate broken down by phase, so you can approve the first phase before committing to the rest. Before work starts, we sign two documents: an NDA that protects your data and a software development agreement that sets the team, timeline, budget and other terms. You own the code and everything the team creates, whichever model you choose.

Fixed Price vs Time & Material vs Dedicated Team

Fixed price Time & material Dedicated team
Who leads the work Intobi, against an agreed scope Intobi’s team, with priorities you set each sprint You, with developers working inside your process
Best for Small, clearly defined projects Products whose scope is still evolving Long-term products and changing roadmaps
How you pay One price for the agreed scope Hours worked at the agreed rate Monthly: a fixed monthly price or the hours worked
Scope changes Through a change request Re-planned every sprint Any time: you set the priorities
Budget Known before work starts Approved phase by phase Known per month
Minimum Projects from $10,000 Projects from $10,000 One developer for two months

Need one or two engineers to join your in-house team for a short period? That is IT staff augmentation.

Fixed Price: One Price for an Agreed Scope

With a fixed price, we agree on the scope in writing first: the features, screens and integrations. You get one price and a timeline for that scope, so you know the total budget before development starts.

Best for: an MVP or a small product with a clearly defined scope, a project with a strict budget, or a well-described part of a larger system. See our MVP development services.

Keep in mind: anything outside the agreed scope goes through a change request with its own estimate. A fixed price also includes a buffer for risk, so if you expect the scope to change, time & material usually costs less.

Time & Material: Pay for the Hours Worked

With time & material, we build in short sprints and you pay for the hours actually spent, at the agreed hourly rate. You set the priorities for each sprint and can change them as you learn from users and the market.

Best for: products whose scope is still evolving, work after an MVP launch, and projects where the speed of change matters more than a fixed total.

Keep in mind: the total budget is not fixed in advance. We estimate the work phase by phase, so you approve each budget before it is spent. Hourly rates start at $15 for a strong junior developer, about $30 on average for a strong middle developer and from $35 for a senior developer; see our pricing.

Dedicated Team: Developers Who Work Only on Your Product

A dedicated team works full time on your product, inside your processes and tools. You interview every developer before they join, talk to them directly and treat them as your own team. One developer works with one client at a time.

Best for: long-term products, changing roadmaps and companies that want more engineering capacity without hiring in-house.

How you pay: once a month, either a fixed monthly price or the hours worked at the agreed rate. The minimum is one developer for two months, and work starts within two weeks of signing. If a developer does not fit, we replace them at our own cost. Read more about our dedicated development team.

How to Choose the Right Model

If this sounds like you Choose
You have a clear scope and a fixed budget for the first version Fixed price
You know the goal, but the scope will change as you learn Time & material
You need ongoing development for many months Dedicated team
Your in-house team needs one or two extra engineers for a while IT staff augmentation
You are not sure yet Tell us about your project, and we will recommend a model

Many products combine models: a fixed-price MVP first, then time & material or a dedicated team once the roadmap is clear.

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Engagement Models FAQ

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Which engagement model is the cheapest?
It depends on how stable your scope is. For a small, clearly defined scope, a fixed price gives you a known total. If the scope will change, time & material usually costs less, because you pay only for the hours worked and there is no buffer for risk. For steady long-term work, a dedicated team billed monthly usually costs the least per hour.
Can we change the model later?
Yes. We estimate and approve the work phase by phase, so a product can start with a fixed-price MVP and continue under time & material or with a dedicated team once the roadmap is clear.
How are changes handled in a fixed-price project?
Through a change request. Anything outside the agreed scope gets its own estimate, and you decide whether to add it.
Which model is best for an MVP?
A fixed price, if the core user flow is clear: you know the budget and timeline before work begins. If you are still exploring what the MVP should include, start with time & material.
What is the minimum budget?
Projects start at $10,000. A dedicated team starts with one developer for two months.
How quickly can we start?
We reply within one business day. A dedicated team starts within two weeks of signing the software development agreement.
Who owns the code?
You do, in every model. We sign an NDA and a software development agreement before work starts, and you own the code and everything the team creates.

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