Paid-Hours Model

Freelance-Jobs-Fixed-Price-or-by-the-Hour

  

Paid-Hours Model. This cooperation model is intended for long-term projects , whose required resources are difficult to predict in advance , as well as it is difficult to plan the project estimate. This model allows clients paying for services rendered in instalments under the agreement, which is defined in the agreement. After both parties agree on hardware and software, human and other resources required for the implementation of the project, invoices will be issued on a monthly or quarterly basis.

Advantages of the Paid-Hours Model:

  • Flexible budget
  • Possibility of paying in instalments
  • Low financial risk: the project may be modified or terminated at any time

Shortcomings of the Paid-Hours Model:

  • Indefinite scope of work
  • No strict project deadlines
  • Client must be more involved in the development of the project and devote more time to the project’s control

What this model is the best for?

This model is best for those situations where it is difficult to calculate the total cost of the project, as well as when, due to a variety of factors, client’s requirements may change during the course of the project.

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