[themodelplumber]

That's sort of difficult to compare, because you're paying by milestones, but you probably didn't get estimated by milestone, e.g. "if we make it to the 3rd milestone you owe us this much." Your vendor is probably assuming you want all milestones completed.

[chatmasta]

Not sure what you mean? I'm saying the buyer has a project, and either the buyer or freelancer chops it up into milestones (in my case, I'm an engineer as well as a buyer so I can do this). Each milestone has a set price paid after completion. If the freelancer completes 3 milestones, he gets paid for each. If he completes 4, he gets paid for each. etc.

Not sure what you're saying?

[dreamfactory]

Depends whether your milestones are measured in time, features, business outcomes. First would still be t&m - just be a larger unit than days; second would be classic fixed price billing (which incentivises low quality hackily bolted together solutions which will be a pain to maintain and extend); third would be value-based consultancy.

[lifeisstillgood]

This is a fair insight - there are always milestones - the ones you agree to get paid by affect the project as a whole

I would suggest talking in terms of features / business outcomes.