Hey Kudos,

Many thanks for your kind and expanded reply!

What you’ve stated here sounds pretty reasonable — T&M allows us and our customers to be a bit more flexible in term of features and project course change. However, this type of contract may be a great fit for a product with a great financial support — as all of these changes would lead to increased price, which is quite harsh for many entrepreneurs.

Regarding the competitor who has outrun you by releasing his product faster than you have (and this helped him occupy the niche you were aiming at).. well, the proper business analysis, market and user research, and a decent project speicification written in advance serve well as the protection from these cases.

I guess contracts are different colors and sizes — same as customers, who each prefer one or another, for a variety of reasons.