BILLING MODELS
Time and Materials
Time and Material with Not-to-Exceed clause
Fixed Price Project
Milestone-based payment schedule
Monthly Resource-based payment
Time and Materials
The standard time-and-materials method of work based on Actuals. This is usually monitored through weekly timesheets and progress reports.
Time and Materials with Not-to-Exceed clause
A standard time-and-materials method, with an additional clause that price will not exceed a certain amount.
Fixed-price Project
Project bids, on fixed-price fixed-time basis. Bids may be fixed on hard set of specifications, or accommodate certain level of flexibility.
Milestone-based payment schedule
In a remote development project, milestones-based payment schedules reinforce progress monitoring, and the evolution of firm, achievable milestones. Milestone-based payment helps you justify payment, and visible progress reduces risks.
Monthly Resource-based payment
Ideal for the Extended Development Center model, billing is done monthly based on the number and level of resources utilized.
