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AI implementationArticle

AI implementation: fixed price or time and materials?

Choose a pricing model by examining what is known about the work. A change record helps compare supplier proposals and keep decisions visible.

Author

Syntalith

Published Updated 3 min read

A fixed price for AI implementation needs an agreed scope and assumptions. With hourly billing, the buyer needs work approval rules, a record of completed tasks and spending controls. Neither approach removes uncertainty about data or integrations. Identify those questions before work starts.

At Syntalith, scope, price and timing follow process assessment. Our implementation offer describes a fixed quote for agreed work. If another supplier proposes hourly billing, ask how it will report completed work and obtain approval for further spending.

What each arrangement covers

AreaFixed priceHourly billing
BasisDefined result and scope assumptionsAgreed tasks, rates and time reporting
Progress reviewMilestones and delivered resultsResults and time spent on tasks
UncertaintyNeeds investigation or explicit change conditionsCan consume time; agree when to stop investigating
New requirementAssess impact and agree additional workSet priority, estimate effort and approve spending
Stage completionAgreed acceptanceAgreed acceptance or completion of the specified work

Include tools and operating costs in both proposals. A fixed development price does not fix model charges when case volume grows. The AI agent cost guide explains that separation.

Resolve a specific unknown before quoting

Suppose a project should save quote drafts in a CRM, but access to the required object is unconfirmed. The team can test access and a sample write before quoting the integration.

Ask the supplier to name the uncertainty, explain the check and state the decision following a failed attempt. If it proposes a separate paid pilot, define the stage output and which elements remain useful for subsequent development.

A scope change record

Distinguish correcting behavior that fails an agreed requirement from adding a new feature. A shared brief and decision record help.

FieldIllustrative entry
Existing scopeQuote drafts from one mailbox into one CRM
Proposed changeA second company with a separate catalogue
ReasonAnother user group needs the workflow
ImpactAccess, data separation, tests and schedule to assess
DecisionWho approves the cost and when work can start

Calling a change small does not establish its effort. A second mailbox might require one connection or separate permissions and acceptance work.

Before selecting a supplier

For a fixed quote, check exclusions and what happens when assumptions change. For hourly work, identify who can assign tasks, the spending threshold requiring further approval and the report format. Agree acceptance, handover and maintenance in both cases. Bring Syntalith a list of unresolved questions so we can identify what needs checking before a fixed quote.

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Syntalith is an OpenAI Select Partner in the OpenAI Partner Network.

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