Time and Material Plan
Time and Material model is of ideal choice for that Software development project whose scope, specification and implementation plans are not easy to define at the inception. Under this model, customer pay as per use of the hourly development efforts with a commitment of minimum hours/month/resource, making it the most flexible of the three models.
Software development project requirements tend to change during the course of execution which asks for flexibility of additional or lesser resources. To facilitate such development, this model gives the flexibility of modulating team size, while optimizing on the time and costs. The execution steps under this model are same as the previous one except that the development effort is billed at the end of every month based on monthly generated time sheet and pre-negotiated hourly rate.
