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Interview multiple candidates
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Search for the right experience
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Ask for past work examples & results
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Vet candidates & ask for past references before hiring
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Once you hire them, give them access for all tools & resources for success
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Accurately estimating any IT work is a challenge. If the estimate is too large, the budget would not be spent efficiently. Too small, and the project ends up in the red. Adding to the difficulty, the contractor’s costs can change between the estimate and the completion of work. Software license costs could rise, professionals could drop out of the team, new regulations could be imposed. That’s why in such exposed cases we’d propose a time and materials contract.
With a time and materials contract, instead of quoting a fixed price for the entire project, a contract will describe the rough scope of the job along with a quote for a fixed daily or hourly rate plus the cost of materials (license, HW, ect…). The Client might also include a maximum price for the project — commonly called a “not-to-exceed” clause — as a guarantee to protect the client against runaway costs.
A time and materials contract usually specifies only the purpose of the job along with daily or hourly rates and materials costs. They’re suited to situations with less predictability because if the job specifications change no renegotiation is required; it just costs more in time and materials.
The Parties agree on the goal of the project and specify the finished product. It might not be feasible to define all the steps along the way. Within that framework, they agree on daily or hourly rates for the contractor’s resources. The Parties specify the eventual license and HW to be used.
Time and materials contracts are best when the scope of the job or its duration cannot be determined before work begins.
Contact us today
We're here to help, whether you have a clear project plan and need the necessary resources to make it market-ready, or if you would like to consult with our experts to bring your project to life.