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Time and Materials Contract for Software Development


It is rare when the work of an IT project proceeds as planned. Usually, a customer knows the desired result, and a contractor has to choose how to reach it. The customer needs experts who will estimate his project and analyze it. Besides, the experts have to form a team of the right specialists, come up with a solution, and deliver this solution.

At the same time, the customer needs to monitor intermediate results of the project, check the course, and initiate changes if suddenly something goes wrong. But if the scope of work has already been fixed in the contract, it will take time to agree, reestimate work, and perform all improvements.

Besides, IT projects usually continue for a long time: six months, a year, or more. And then the product is supported for some time. But technologies and trends are evolving during this period, and the project may no longer meet the market's needs. To get the desired result, we recommend the Time and Materials format.


What is Meant by the Time and Materials Contract?

Time and Materials contract is among the most known relationships when developing custom software. This format involves periodic payment for the work performed only. The development team and the client play an active role in achieving the desired result.

Time and Materials contract definition. It is the approach up to which a customer covers the materials costs and pays for actual hours each developer devotes to work.


Time and Materials Contract Advantages

  • Flexible terms. All working processes are divided into one-month stages, during which a customer checks the work done and initiates new changes if necessary.

  • The ability to start working quickly. This format does not require much time preparing. It is suitable for companies that value their time.

  • Quality control. A customer can verify the product at certain stages and control all necessary changes to improve it. So, he will have a better product that meets his expectations.

  • Hourly payment. A customer pays for the hours spent on the product development.

  • High involvement and openness of the process. With this model, a customer better monitors the development process and communicates more often with engineers. So he can make changes in development on time.

When to Use Time and Materials Contract

This contract type will suit you if :

  • You plan to launch a long-term project or project with requirements that will change.

  • There is a certain not well-defined amount of work.

  • Flexibility in the development process is required.

  • The product is innovative and requires research to determine the development plan and architecture.

Why DataEngi Uses Time and Materials Contract

We aim to give high quality results to our customers for the optimal time. DataEngi has many years of experience in data software development, so we can estimate your project professionally.


Ready for T&M? Contact us!


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