This kind of engagement model is used by the client when they need the resources to work on their projects the full time. In this model, clients will directly manage the resources, assign them the work, and coordinate with them.It will be responsibility of the client to keep the resources engaged.
The fixed price project or contract is defined as an agreement to provide services to the client at a fixed price. In this kind of project, the below components are fixed and usually defined & documented before the beginning of the project.
A change in any one of these components will invariably affect the other two and that is why change control is critical. The amount defined at the beginning of the project is not supposed to change during the development stage.
Time and material is a project or contract type where we bill the client based on the actual hours consumed by the developers. We work with this model when the project is open-ended or undefined, and an accurate estimate cannot be calculated.
Time and Materials agreements are great when :
This is a type of contract when a company needs support & maintenance services for their website or web application that has already been launched. In this type of project, monthly hours are fixed and defined by the agreement. In case of any additional hours, approval needs to be taken from the client and proceed ahead.
Here are the reasons why clients should go for the support and maintenance based contracts :