In the Time and Materials contract you are billed based on the number of hours the resource team spent on a specific project, the technology and skill level of the team working on it. Software licenses and similar costs will be common to all pricing models. However, in T&M, efforts and cost will be estimated based on the resources required to develop each user story. Since resources and timelines can accommodate change requests, the main advantage of the time and materials contract is the flexibility to adjust your requirements, replace features that don’t work and shift directions. However, if the IT project takes double the estimated time then the cost of development can also double.