Time and Material Model  

Time and Material Business model is based on the resource utilization during the project time span. The client pays us for the number of hours actually required to perform the service. We would have a pre-negotiated labor rate per hour (i.e. $50 per hour) and pre-determined mark-up materials used for the project (cost of material + 15-35% marked up). With this kind of engagement, the client will normally ask for a “maximum number or labor hours” or “not to exceed total cost” of the project.

When project scope, specifications and implementation are hard to define, this model becomes an attractive option.