What is a time and materials contract?
With that type of contract, the client agrees to pay by the hour for the effort put into their project. With this kind of project, you will not have to worry about the issues of what is included and what is not, like you do with a fixed bid. You and your vendor can make decisions and press ahead with the project. It will also be easier for you to have a say in how things are done since you will have to pay the price if the least expensive route is not chosen. A time and materials contract also puts pressure on you to do everything possible to assist the vendor do a good job. This usually makes for better projects. The negative side of this type of contract, however, is that you will not know your exact cost ahead of time – so, if you do not pick a good vendor, your costs can get away from you quite easily. If you opt for that kind of contract, it is crucial that you keep track of what you are asking for and insist on good faith estimates so you can control your budget.
