In this case you pay for the actual work scope based on hourly rates of labor. Put simply, you are charged for amount of hours spent on your project, plus costs of materials. The main plus of T&M model is flexibility. It enables you to adjust requirements, change directions, replace features, and involve users to get the very product.
T&M Model is the most suitable when:
- You prefer to pay for the actual work scope based on hourly rates of labor;
- Your project is long-term and have dynamic requirements;
- The scope of the project is not yet fully known;
- You want flexibility to modify the scope or vary the workloads.