Time And Materials Consulting Agreement - Download Free Template
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A time and materials contract in software development is an agreement where the client pays based on the time spent and resources used by the development team. It's flexible for evolving projects.
A time and material agreement is a contract where compensation is determined by the time and resources expended on a project. It offers flexibility to accommodate changes and evolving requirements.
The three main types are fixed-price contracts (set cost for specific deliverables), time and materials contracts (payment based on effort), and milestone-based contracts (payments tied to project milestones).
The best contract type depends on project complexity and predictability. Fixed-price suits well-defined projects, time and materials for evolving ones, and milestones for staged deliverables.
Unlike fixed-price or milestone-based contracts, a time and materials agreement offers flexibility as costs are based on actual effort. It accommodates changes and dynamic project needs.