Overview
Time and Material is a pricing model where a client pays for actual hours worked and resources used, rather than a fixed price agreed upfront for a fixed scope. It’s the opposite of fixed-price contracts, where the price stays locked regardless of how the work unfolds.
Why it matters
Fixed-price works when requirements are fully known before development starts — which is rare on most real software projects. T&M leaves room to adjust scope as priorities shift or new information comes in, in exchange for less budget predictability than a fixed price offers.
How Dotcode applies it
We use T&M for most ongoing and evolving projects, paired with transparent time tracking so clients see exactly what they’re paying for as the work happens.
