CATEGORY | T&M

In construction, time and material refers to a contractual arrangement where the client pays the contractor for their exact costs of construction, plus a fixed overhead and profit margin. The costs the client pays are the exact costs of the contractor, including labor, equipment, materials and other subcontractors. Overhead and profit margins are typically billed on a percentage of the costs. There are many differences between a lump sum contract and a time and material contract. Let’s explore the advantages and disadvantages of time and material contracts, plus some tips!