Time & Material Agreement in App Development: How to Start?

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Digiryte February 07, 2020 11:28 3 min read 726 views so far!

“Great Things Will Happen When You Focus More On Business Value, Not Just On Lines of Code”


Are you tired in search of all the potential answers before your development begins?


Isn’t it time-consuming to form those lengthy documents with precise development specifications?


It does take much time to compile the work. It’s quite common for projects to go out of budget and you easily miss the chance to consult with hired developers.



Because you’ve no choice but to prepare the document in advance.


What if I tell you about an agreement that’s so much more flexible and powerful?


You heard it right. Now break free from those development contract formalities; make room for renegotiations. With the time and materials contract, now you can modify your final product as needed.


How do I Start the Time and Material Agreement?

Under a T&M agreement, you can now pay for your work and the development team expertise; you can direct the work in any way you want. The general scope of your work and time estimates in a roadmap form.


T&M also helps you buy sets of testing hours. An incredible way to start is- through the estimation of Business Value (BV).


Drop the idea on what features to deliver it on time; instead, focus on how much value each feature could bring to your business.


Depending on the type of your business, BV tailors by factors-


  • Conversion Rate
  • In-app purchase
  • Potential revenue
  • Impact on the number of sign-ups

Picture This:

You rebuild a user panel with extra features. However, your user won’t care about it. Alternatively, you add a new payment method to your app that supports multiple currencies.


The BV will impact on the latter, which is why you should focus more on business value rather than the lines of code that provide for a specific time. Your business profits more with BV factors.


Time and Materials Agreement: How to do it the right way?


  • Keep an eye on the developer’s motivation- If their morale drops, then report immediately.
  • Be very transparent.
  • Verify their work on time.
  • Understand you can pull out or continue the project any time you want.

What do I Get From Time and Material Contract in Project Management?


  • You don’t have to establish all the requirements from the start.
  • It delivers a guaranteed, usable product.
  • It’s flexible and control over the project.
  • It eliminates the risk of product overdesign.
  • Can give feedback to the development team for every iteration.
  • Quickly estimate your work within a specific amount of time and budget.
  • You can effortlessly scale the team up for faster development or scale down to save money.

How to decide- Time and Materials v’s Fixed Price Construction?


  • Do you know what “exactly” you want to build?
  • If you’re unsure or if it’s an unpredictable scenario, then go for time and materials service agreement; else go for fixed-price.
  • How significant is flexibility for you?
  • If you prioritise flexibility, then T&M is the right choice for you. If not, then the fixed price is the one and wait for the contractor to give you results.

Need a hand?

In case you need a hand to manage your pricing, contact us to know how we can help.


Want to know how? Click Here