Create a professional time and materials contract that protects both parties. This template includes hourly rates, materials markup, maximum price limits, and clear payment terms.
A time and materials (T&M) contract is a legally binding agreement where the client agrees to pay for both the actual time spent on a project and the cost of materials used, plus an agreed-upon markup. This type of contract is ideal for projects where the scope cannot be accurately estimated upfront or when project requirements are likely to change.
This T&M contract template is designed for contractors, construction companies, and service providers who need a flexible agreement that ensures fair compensation for both labor and materials. It's particularly useful for projects with uncertain scopes, renovation work, or complex construction projects where exact requirements may evolve during execution.
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Real examples of successful T&M contracts:
T&M contracts bill for actual time and materials used, while fixed-price contracts set a predetermined total price regardless of actual costs.
Materials markup typically ranges from 15-35% above actual cost and should be clearly specified in the contract.
Yes, many T&M contracts include a 'not-to-exceed' clause that sets an upper limit on total costs.
Most T&M contracts specify weekly or monthly billing cycles with detailed time and material cost documentation.
Typically required: detailed timesheets, material receipts, progress reports, and markup calculations.