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in time and material contracts the buyer pays for the materials plus a per day or a per hour rate for all staff the seller provides to complete the work such type of contracts are often seen in an example where you have hired a few developers to write a program for you and they charge you a fixed cost per month for their office rentals and maybe a variable cost on a per hour basis for the number of hours spent in coding okay if you need to increase or decrease the number of developers working for you such type of contracts provide you the option to do that very easily the risks as I mentioned are equally shared between the buyer and the seller right as a buyer you always set an upper limit on the time and material part of the contract
