Common Contracts
1 similar Time and Materials Contract contracts
What is time and material contract. xuvugi When to use time and material contract.Time and Materials Contract • January 9th, 2024
A time and materials (T&M) contract is a type of construction contract where the owner pays the contractor for the actual costs of materials and labor plus a markup. This contract is different from a lump sum contract, which has a fixed fee for the whole project. A T&M contract is suitable for projects that have unclear or changing requirements or timelines. It allows both the owner and the contractor to adjust to the project conditions and have more transparency and flexibility. In this article, you will learn how T&M contracts work and what are their pros and cons for both parties. A T&M contract is an agreement where the contractor gets paid for the materials and labor they use for the project. The contractor's bid is based on the unit prices of materials, the hourly or daily rates of labor, and the markup percentage. The markup covers the contractor's overhead, indirect costs, and profit. However, a T&M contract does not mean that the project has no budget limit. Usually, the owner
