Fixed fee projects are similarly fraught with danger. There are two scenarios: 1) The client over-pays due to developer over-bidding. (In relation to the time

Fixed fee projects are similarly fraught with danger. There are two scenarios: 1) The client over-pays due to developer over-bidding. (In relation to the time it took him to complete the project.) 2) The developer over-works due to under-bidding. Neither is particularly advantageous for the client, as a developer will not be as responsive to a client's needs if he or she is working towards a minimum feature set. A developer can make a reasonable estimate based on clear goals. If requirements change (as they inevitably do) the developer will be compensated accordingly. Similarly, if the project is finished in less time than expected, the client will reap the benefits.