When it comes to billing in a time & material model, it provides a flexible and transparent approach for both the software development company and the client. Here’s how the billing structure works:
1. Hourly Basis:
The billing is typically done on an hourly basis, where the client is charged for the actual hours worked by the development team. This ensures that the client only pays for the time spent on the project and can have a clear understanding of the cost.
2. Resource Utilization:
In addition to the hours worked, the client is also billed for the resources utilized, such as infrastructure, software licenses, or third-party services. This ensures that all the necessary resources for the project are accounted for in the billing.
3. Timesheets:
To maintain transparency, detailed timesheets are provided to the client, outlining the tasks performed, the time spent on each task, and the resources utilized. This allows the client to have a clear breakdown of the billing and ensures accountability.
4. Rate Structure:
The rate for the time and material model is established based on various factors, including the expertise and skills required for the project, the complexity of the tasks, and the resources utilized. This rate is agreed upon between the software development company and the client before the project starts.
Overall, the time & material model provides flexibility and adaptability for projects with evolving requirements or where the scope is not well-defined. It allows for adjustments and changes throughout the project without requiring a complete re-evaluation of the budget. The detailed billing structure ensures transparency and helps the client have a clear understanding of the cost.