Time and material

Time & Material model is used for projects, when it is difficult to estimate the required resources and in a result prepare the estimate and plan the budget. This model provides customer with a possibility to pay for software development services in parts according to the payment agreement specified by the contract. After both sides have agreed on time limits, software, hardware, human and other resources required for your project, we invoice customer on monthly basis.

Typical projects that use Time & Material model are long term projects & startups. Time and Material

Advantages:

  • Flexible and negotiable budget.
  • Flexible requirements change by using Scrum/Kanban project management methodologies
  • Possibility to pay in parts.
  • Low risk: project development can be changed or canceled at any stage.

Items that require customer attention:

  • No strictly defined time limits
  • The project budget is changeable thus needs additional tracking
  • The client needs to be highly involved into project development process, including user acceptance and approval of time sheets.

Best case:

Time & Material model is highly flexible and efficient when it is impossible to predict the final cost of the project or when the customer's requirements can vary or can't be clearly detailed depending on different factors.