Time & Materials
Pay for the work as it happens, not a fixed quote drawn up before anyone understood the problem.
What it is
You get a rate, per hour or per sprint, and we bill for the time actually spent and any direct costs incurred. There's no fixed total agreed upfront, because the scope isn't fixed either: priorities shift as you learn, and the contract shifts with them. This is the standard model in the US market when the work is exploratory, research-heavy, or likely to change direction more than once. You keep full visibility into what's being worked on and can redirect effort at any point without renegotiating a contract.
How it works
Set the rate
We agree an hourly or sprint rate based on the skills the work needs.
Work from a backlog
You (or we, together) maintain a prioritised backlog; we work through it in short cycles.
Bill on actuals
Invoices reflect the hours actually logged, not an estimate made months earlier.
Redirect anytime
Reprioritise, pause, or scale the team up or down between cycles — no contract renegotiation needed.
When to choose it
- /The scope will evolve as you learn more
- /You want to start without locking every requirement upfront
- /Priorities are likely to shift during delivery
- /You want flexibility without a change request for every adjustment
What you get
- /Transparent billing against actual work
- /Full visibility into what the team is working on
- /The ability to reprioritise as needs change
- /A flexible team that can adapt with the product
If the scope is already settled, this may not be the right model.
Time & Materials works best when the product is expected to evolve. If the scope, budget, and deadline are already clearly defined, Fixed Scope & Price may be a better fit. If you need a long-term team that takes broader ownership of delivery, Dedicated Agile Teams may suit you better.
Common questions
What is a Time & Materials engagement?+
Time & Materials is a flexible development model where you pay for the actual time spent delivering the work rather than agreeing on one fixed price for a predefined scope.
When should we choose Time & Materials?+
It works particularly well for evolving products, complex software projects, long-term development, and situations where requirements are likely to change as the team learns more.
How do we control the budget?+
We agree on rates, team capacity, and expected spending before work begins. Time usage remains transparent throughout the project, and we can work with monthly budget or capacity limits where required.
Can we change priorities during development?+
Yes. That is one of the main advantages of the model. The backlog can be reprioritised as business needs, user feedback, or technical findings change.
Is Time & Materials the same as Staff Augmentation?+
No. Staff Augmentation typically adds individual specialists to a team you manage. In a Time & Materials engagement, higroup can provide and manage the delivery team while you retain control over product priorities.
How often will we see progress?+
We typically work in one- or two-week sprints, with working software demonstrated regularly so progress is visible throughout the engagement rather than only at the end.
Can we stop or scale the engagement?+
Yes. Team capacity can be adjusted as needs change, subject to the agreed commercial terms and notice period.
Who owns the code and intellectual property?+
You do. The software and project IP produced for you are transferred according to the terms of the engagement.