94. PMP Procurement Management | advantages and disadvantages of Time and Material contract

Let's look into the advantages and disadvantages of Time and Material contracts in this PMI PMP PMBOK based tuorial video.
there are various contract types are the in project procurement management but this video specifically focus on the advantages and disadvantages of Time and Material contract type.
Time and Material contract is type of project contract where the vendor will be reimbursed for the expense that occured.
The advantages of Time and Material contracts are as follows.
- Easy to create
- Good for resource augmentation assignments where cost risk is shared by buyer and seller
The disadvantages of Time and Material contracts are,
- Seller has no incentive to control costs
- Requires monitoring of daily output
- Good for small projects only