We do things a bit differently here at Espeo. Delivering the highest value to our clients and their end-users is our biggest priority. Based on our experience creating web and mobile apps, we use a time and material model instead of charging a flat rate like many other software houses. Even if it seems counterintuitive, the time and material model is far more effective than flat fees. It will save you money and deliver better quality software.
Time and material working model is becoming more and more popular and it’s not happening without a reason. This working method and payment model allows you to achieve satisfying results faster, easier, and cheaper than other methods. But let’s start from the beginning!
Time and material agreement is great for when the quantity and scope of work is difficult to determine or when you expect design requirements to change in the middle.
In a time and material agreement, the client agrees to pay the contractor and their subcontractors based on the man-hours they devote multiplied by a fixed rate. This is in contrast to an up-front flat fee.
At first glance, you may think that a fixed price would be safer for a business owner, but nothing is as straightforward in software development. Beware companies that spit out a figure quickly. Here’s why: