No, it should work. It is how we do all of our multi-dev work.
Obviously not a system where users are actually doing work in but on dev servers.
I would however drop the backup schedule to once very 15-20 minutes potentially with a progressive backup every 5.
As Wim said you should bump up your backups.
The only other thing to consider is dividing up the work so two people dont need to edit the same thing at the same time. If one person has manage database open they have "lock" and the other wont be able to edit if they need. Same thing with layout mode for any given layout. Probably applies to script/layout/custom function and any editiable object in FM
Just plan your units of work so that competition for resources is at a min.
Thanks all, Although not by design the Filemaker hosting arrangement lends itself pretty well to development with a team.
It certainly does. Even when I am the only dev on a project I tend to put it on a dev server and set up a backup schedule to match what I think how many "restore points" I want to keep (to undo work) and how much work I want to loose.
Those backups alone are worth it.