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I just posted this at Google+, and it's worth echoing here:
Fixed bid web development makes no sense. It makes adversaries of the developer and client. The client always want more than they realize at the point of RFP development and/or discovery, and they always want to work it into the fixed price, so there's a struggle where the client wants more and the developer has to adhere to the estimate of hours or lose money on the project. And even a thorough discovery often won't reveal hidden complexities of a project. Projects that seem simple often aren't, complexities emerge in the process of development. At Polycot Associates, we no longer work according to fix bids or respond to competitive RFPs. Most other developers we know have made the same decision.