Time And Materials Contracts
Time and Materials (T&M) contracts are a project management and billing methodology where clients pay based on the actual time spent by developers and the materials used, rather than a fixed price. This approach is common in software development for projects with uncertain scope, frequent changes, or evolving requirements. It provides flexibility for both clients and development teams to adapt as the project progresses.
Developers should understand T&M contracts when working on projects where requirements are not fully defined upfront, such as agile development, research and development, or when clients need ongoing maintenance and support. This methodology is particularly useful for startups, innovation projects, or when dealing with complex systems where estimating a fixed cost is impractical, as it allows for iterative development and continuous feedback.