Time and Material (T&M)
During the software development process there are situations and projects that demand flexibility from all the parties involved. Time and budget constraints can be impetus for the more mutually beneficial agreement than ordinary fixed price model.
Among the different engagement models Time & Material (T&M) is gaining more and more popularity, since it allows more control over the development progress and cost, instead of taking an educated guess at eventual expenses and high probability of additional overpriced changes.
The Time & Material model is used if there is no whole vision of the final product and its implementation specifics and if it is impossible to divide it into several smaller stages. This option is fully negotiable and can use an hourly, daily, weekly or monthly rate for the amount of work, tasks, resources, materials, or other expenses that were applied in the development process. There is opportunity to further clarify the pricing distribution, e.g. whether rate depends on the skillset needed to perform the task, or it is the same for all resources involved in the project. In order to prevent the uncontrolled price growth for support projects, client can discuss the upper limit for project budget beforehand.
One of the biggest benefits of this model is task prioritizing for development projects. Each project is divided into several separate tasks (involving features, use cases, tests, etc.). Provider’s project manager gives advice on importance, level of complexity, way of implementation, and price of this tasks. As a result client can prioritize the order of features and use cases depending on their price and relevance to project solution. In this case the prototype of functioning system can be developed more quickly, client can decide when and how to implement more complicated and expensive features. Service provider and client will always counterpoise project requirements, their understanding and implementation.
The standard time-and-materials methods of work, based on actual spend. This is monitored through weekly timesheets and progress reports. From the customer’s perspective, you are always assured of getting what you need and paying for only what is needed. There are several benefits that Flexasoft’s Time and Material engagement model brings to you: Complete transparency. We provide detailed timesheets of every week. No hidden fees Reinforcement of Flexasoft’s ability to offer flexible engagements and teams Time and material jobs work out for the best when there are many ‘unknowns’ about a project. Since there is a degree of uncertainty, it is highly essential that all aspects of the project are taken into account clearly and a scope is kept for incidentals.
If at least one of the following situations applies to your project, you should consider T&M model:
- When requirements are not precise or specifications cannot be clearly defined.
- When on the first stages project is still raw and there is no sufficient data to properly estimate the final cost.
- When client has constant flow of tasks or enhancements but they are scattered in time and cannot be predicted in advance.
- When project scope is unknown or implementation spreads over months or even years.
- When client requires high level of flexibility or change requests often appear during the development process.
- When client wants more direct control over the process or provides certain resources that can influence the project implementation.
- When project is connected with evolving markets, new technologies or untested facilities.
Benefits of working with the T&M model:
- Provision of strong business analysis, market research and project management
- Provides business solutions for complex business problems, utilizing various skills and tools
- Ensures tangible benefits and measurable results for assessment of the project
Flexasoft’s Time and Material Model offer you a high degree of flexibility to modify project specifications, incorporate unplanned activity and increase or decrease project resources depending upon the client\’s evolving requirements, over the project lifecycle. We provide you the flexibility to switch to our Fixed Pricing Model once your project scope is determined.