Time and materials (T&M) contract

Time and materials (T&M) contract,

Definition of Time and materials (T&M) contract:

  1. An arrangement under which a contractor is paid on the basis of (1) actual cost of direct labor, usually at specified hourly rates, (2) actual cost of materials and equipment usage, and (3) agreed upon fixed add-on to cover the contractors overheads and profit.

How to use Time and materials (T&M) contract in a sentence?

  1. Our time and materials contract was in place and I was excited to get things under way after a long delay.
  2. When I renovated my basement, it made sense to use a time and materials contract with my contractor, since the job was somewhat open-ended, since I wasnt sure exactly what I wanted.
  3. Due to the requirements of your work not being clear, we can enter into a a Time and Materials Contract for the Phase 1 of the project.

Meaning of Time and materials (T&M) contract & Time and materials (T&M) contract Definition