In project-based pricing, the firm charges a single fee for the complete delivery of a project, with costs calculated based on the project’s complexity, scope, and the value it provides. It’s a hybrid of fixed-fee and value-based models, offering a balance between cost certainty and focus on deliverables. This model requires precise scoping and planning, as well as an understanding of the client’s objectives to set a price that reflects the value provided by the project’s successful completion. It’s an approach that can lead to innovative problem-solving, as the firm is motivated to achieve objectives efficiently. However, the firm must manage the project meticulously to avoid scope creep, where the project expands beyond its original boundaries, increasing work without additional pay. Regular communication and clear documentation are crucial to manage expectations and maintain project boundaries. Project-based pricing is common in consulting, marketing, and IT services, where the deliverable is clearly defined and the outcome can be aligned with a fixed cost.