In time and materials, you, as an app dev firm, say, “Gosh, I dunno—that’s a complex project. We’ll just start working and it’ll cost $100 per hour. We think it’ll take 5,000 hours, but that’s just a guess.” The customer now agrees to a rate for the work rather than a price for the deliverable. Guess what. That makes the customer really interested in what you’re doing during those hours. It’s the only measure they have for managing risk.
