With T&M (service) we invoice the number of hours worked for your project according to the effort. The main advantage of this type of contract is the flexibility to adapt requirements, change direction and replace already defined features. This form of contract is particularly suitable for long-term projects with imprecise requirements. But T&M is also recommended for projects where the scope of the project cannot be specified.
Advantages of T&M:
Flexibility: Unit price contracts enable companies to change the volume of work, to revise work equipment and designs, to shift the focus or to change features after the project has been implemented.
Dynamic scope of work: There is a goal to be achieved, but it is not important to know beforehand how to achieve it. Especially for start-ups or medium-sized companies, it is more advantageous to make decisions during the development. Another goal is to develop strategy and customer-specific software at the same time, whereby such an approach is subject to agile methodology.
Time savings: By eliminating the fixed price tendering process, the project can be started immediately.