Glossary · Definition
Time & materials (T&M)
Time and materials is a contract model where you pay for the time actually spent by the team, typically at agreed rates, with flexible scope.
By Nythrex EngineeringUpdated 1 min read
In plain words
T&M reflects the reality that software scope changes. It’s flexible and avoids padding — but it moves estimate risk to you, so it’s only safe with strong visibility: a backlog you control, demos, budget versus delivered scope and spending caps.
When it matters to you
- Evolving products with strong product ownership
- Dedicated teams
- Ongoing maintenance and improvements
Common pitfalls
- No visibility of what hours produced
- No caps or forecasts
- Vendor controls priorities
Keep reading
GuideFixed price vs T&M vs milestonesWhich contract model protects you? Fixed price, time & materials and milestones compared on risk, flexibility, incentives and hidden costs.GlossaryFixed priceFixed price is a contract model where the vendor delivers an agreed scope for an agreed amount, carrying the estimate risk.ServiceDedicated development teamA dedicated team working in your process and tools: engineers picked for your stack, flexible capacity, replacements and continuity handled by us.
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