The cost of a website is a point of negotiation between the agency and the organization. There are two typical routes for pricing:

1. Fixed-bid pricing, with a complete price to cover the project as defined by the scope.
2. Time and materials pricing, with an estimate on the effort required and a daily or hourly rate for the work.

Fixed-Bid

Pros

• Pre-defined price for organizations.
• Dissuades scope creep for agency.
• Predictable billing for milestones.
• Encourages agency to reach milestones quickly.

Cons

• Doesn't permit flexibility in scope.
• Billing milestones become unpredictable if delays occur.
• If agencies complete under estimates, organizations are at a loss.
• If agencies complete over estimates, agencies are at a loss.

Time and Materials

Pros

• Permits flexibility in scope.
• No loss for either party.
• Permits monthly invoiced and billing.

Cons

• Requires organizations to produce an accurate scope or expect costs to continue.
• Can be less predictable for procurement departments.