Time and Materials Contract (T&M): When to Use One & Best Practices

Time and Materials Contract (T&M): When to Use One & Best Practices

A time and materials contract is a legally binding agreement that outlines how an employer will pay a contractor for the time and materials they spent on a project. It is commonly used in construction project management, but can also be used in product development and other types of projects. To track time and costs, project owners and contractors should use project management software like ProjectManager.
A time and materials contract is an important part of any project. It involves defining labor categories for each type of tasks, determining an hourly rate for all types of work, and specifying material costs. These costs include direct materials, indirect costs, incidental services, material handling costs, and other material-related labor costs. It is important to understand that there are different types of costs associated with the material requirements of a project.