This model is employed when the total effort cannot be estimated in advance and the scope of the work can be changed during the development process. This approach offers the flexibility to balance team size and project workloads and offers continuous control over time, budget and deliverables. Therefore, you pay as per the actual man-hours used in developing the software and actual expense incurred, if any.
A charge based on the total effort reported by the team and accepted by the client is issued on a monthly basis.
Advantages :
Flexibility. Unit-price contracts allow businesses to modify the volume of work, revise materials or designs, shift the focus or change features following the project implementation.
Dynamic work scope is one of the key features within larger projects. There can be a general goal that should be achieved, however knowing how it’ll be reached is not that important beforehand. Often for startups and mid-sized companies, it is better to make decisions in the process, evolving a strategy and building custom software simultaneously.
Better timing. Avoiding fixed-price bidding processes helps to save time and start immediately. Moreover, blended rates allow you to see how much time the team spends on each feature and commit, and so motivate it to work more efficiently.
Disadvantages :
Low budgeting control is the main disadvantage of a T&M contract. The overall cost can go far beyond the expected budget.
Deep involvement is required from you to make sure that the team is delivering toward the approved scope and within the correct amount of hours.
Organization: goes well with Dedicated Teams
We bring together our consulting, management, and delivery expertise to seamlessly orchestrate the entire asset lifecycle and maximize ROI. Drop us a line, and will get back to you to discuss a model best aligned with your business objectives.
Propose me a model
ENGAGEMENT MODELS