Time and Material / Hourly Based
When the project scope is unclear or expected to change over time, the Time & Material (T&M) or hourly-based model works best. With this one, you can easily change requirements, features, or priorities immediately. Customers pay for actual development hours plus all incurred costs, such as materials, etc.; because of this payment transparency, clients can see how every coin was spent. This approach enhances agile development practices, which makes it easier for companies to do pivots without too many contractual complications due to their ease of incorporation of client opinions into an ongoing project without subsequent renegotiations; hence, it is excellent, especially in cases when requirements are dynamic or experimenting around with new concepts.
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