Time and materials
A contract arrangement where the owner pays the contractor based on the actual time spent and materials used rather than a fixed price.
This arrangement offers flexibility for projects with uncertain scopes or durations, accommodating changes and adjustments as needed.
Used in a sentence
The time and materials contract allows for billing based on actual hourly labor and material costs.
Synonyms/variation
T&M
Stay updated on what’s happening in construction.
Subscribe to Blueprint, Â鶹ÊÓƵ’s free construction newsletter, to get content from industry experts delivered straight to your inbox.
Learn MoreLearn more about Time and materials
How GCs Can Enhance Financial Accuracy with Automation Tools
Automation is super-powering construction. Many teams now use autonomous drones or other self-driven devices to capture progress on the jobsite alongside systems that automatically remind stakeholders to review submittals and respond to requests for information (RFIs). There’s no shortage of places where automation is helping construction professionals get more done with less effort. Still, there’s […]
Construction Accounting Software: Key Features and What To Look For
Commercial contractors manage large and complicated budgets that can have slow payment rates and volatile costs. They also have to accurately allocate job costs based on specific factors such as project, phase, or cost codes. Compliance requirements add another layer of complexity to construction budgets, since contractors have to track measures such as prevailing wages […]
Are Construction Financial Systems Ready for Next-Gen Technology?
Are construction financial systems equipped to handle the demands of next-generation technology? In episode 7, we’ll explore the evolving role of the construction CFO and whether financial leadership is truly ready for the advancements in data analytics, ERP integration, and automated platforms—or if cultural resistance is still holding back progress. What are the organizational barriers […]
BIM for Construction Cost Control & Budget Management
As the construction industry advances in its digital transformation journey, building information modeling (BIM) is becoming increasingly common. Teams and individuals who push back against using the 3D model and its associated processes usually have one common complaint: cost. Certainly, there’s some investment in BIM software, plus the training required to help team members use […]
How can we improve this glossary entry?
By clicking this button, you agree to our Privacy Notice and Terms of Service.