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	<title>PMServicesNW &#187; project pricing T&amp;M</title>
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		<title>Project Pricing – T&amp;M</title>
		<link>http://www.pmservicesnw.com/2010/09/project-pricing-%e2%80%93-tm/</link>
		<comments>http://www.pmservicesnw.com/2010/09/project-pricing-%e2%80%93-tm/#comments</comments>
		<pubDate>Thu, 30 Sep 2010 04:33:01 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Cost]]></category>
		<category><![CDATA[Pricing]]></category>
		<category><![CDATA[project pricing]]></category>
		<category><![CDATA[project pricing T&M]]></category>
		<category><![CDATA[T&M]]></category>
		<category><![CDATA[time and materials]]></category>

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		<description><![CDATA[By Ray Myers, Jr., PMP T&#38;M, short for Time and Materials, is a common pricing methodology that is used when the project scope is not clearly defined or when the scope frequently changes.   T&#38;M contracts are ideal for small projects or tasks because the client pays for only the actual hours worked and the materials used on the project.  This arrangement gives the client the greatest leverage for obtaining services at the lowest possible price. T&#38;M pricing is quoted based on an hourly, daily, weekly or monthly rate.  The service provider’s profit is built into the quoted hourly rate and any materials used during the course of the project.  Travel expenses are generally reimbursed at cost.  The client’s cost is determined like this:   (Hours Worked x Hourly Rate) + Materials + Expenses   Advantages to the Client Generally less expensive than fixed price or flat rate pricing Provides greatest flexibility when the project scope is not clearly defined Enables scope changes without the hassle of scope control or change management procedures Provides the most control over the project Easy to terminate or cancel the project Disadvantages to the Client Overall responsibility for the project scope, all project deliverables, [...]]]></description>
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