Time and Materials Contracts: A Value Proposition

It’s no surprise to anyone that software project managers dislike firm fixed price contracts. As many others have noted, firm fixed price contracts are typically accompanied by an expectation of fixed scope by the customer as well. In a world where estimates are notoriously uncertain to begin with, if there is no room to move on scope, the software team is “boxed in”, producing code that tends to veer dangerously away from the best value and quality.