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Time and Materials Contract

definition and explanation

Synonyms:

time/materials contract, T&M contract

What is

Time and Materials Contract

In a time and materials contract, a buyer agrees to pay a seller for the actual time spent working on a project, as well as the materials used. This type of contract is typically used when the scope of work is difficult to estimate in advance.

Time and Materials Contract

explained

A time and materials contract is an agreement between a contractor and a client in which the contractor is paid for the actual amount of time spent working on the project, plus the cost of materials used. This type of contract is typically used for projects that are difficult to estimate, such as renovations or repairs.

The main advantage of a time and materials contract is that it allows for flexibility, since the contractor can adjust the amount of time and materials used as needed. This can be helpful if the project ends up being more complex than originally anticipated. The downside of this type of contract is that it can be more expensive for the client, since the contractor is not incentivized to minimize time and materials used.

When choosing a time and materials contract, it is important to make sure that the contractor is reputable and has a good track record of completing similar projects on time and on budget. It is also important to clearly communication expectations to the contractor, such as the desired outcome of the project and any deadlines that need to be met.

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