A T&M Value Discussion.
When we discuss new projects with clients, the contracts typically fall under the headings of either Time and Materials (T&M) or Fixed Price.
These are both valid options for proceeding with a project, but T&M has some clear value differentials that allow for a better end-product than a fixed price deal.
A T&M contract is evolutionary in its very nature; the deliverable, in this case, is the labor we provide to the client over the course of the project. Creative and budgetary control rests with the client from the very beginning. Apollo Matrix explains the labor costs for each team member on the project and gives a good faith estimate at conception to ballpark the final cost for the client based on our understanding of their needs. The client is then in the driver’s seat over the course of the project.
We manage T&M work together. At your request, our team may provide good faith estimates at any point in the project for any portion of work. While estimates are not firm prices or contract dates, they help our clients perform planning and budgeting. Because our client had a hand in directing throughout the process, the end product of a T&M contract is tailored to the client’s needs and business goals.
Fixed price has its place when the client is unsure of exactly what they want the end product to be. Apollo Matrix is happy to step in and guide the process from the very beginning, starting with a comprehensive Discover + Define process to discern the client’s business goals in order to align them with the product’s proposed features. The team then generates a fixed price quote, putting maximum accountability on us to stay within budget and deliver a finished product that performs all the necessary functions to meet the project’s goals.
Check out our handy comparison document (click to enlarge):