Curious what is T&M? The time & material (T&M) contract is based on real-time spent on a project and is an hourly basis or man-day rate. T&M is a different approach to a project than using a fixed price model contract. The fixed price contract look less risky; for, you know the aggregate cost of the project before it goes to the next level – development. However, in reality, it’s not beneficial for the employer/owner/investor.
In the T&M contract, as the employer/owner/investor, you can get the product modified as you may require. Because of constant changes in products, it’s important to make the necessary changes in the product to suit the needs of the end user. If the work involves developing a product, there is enough scope to adjust the functionality, or simplifying the product.
The investor considers the suitability of the product at every stage. This will make it possible for the contractor to make the product exactly what the investor/employer/owner desires for that particular phase or phases of a construction project.
The employer needs to pay only for the actual project work executed. This will help save time as well as money spent on the project.
With knowing what is T&M. Does a T&M contract allow for transparency? Yes, it does. The details sent by the contractor with respect to work such as invoices can be easily verified by the employer.
If you’re an independent contractor, consider T&M contracts if:
If you are a client/employer/investor, and going for a T&M contract, consider these carefully:
So, what is T&M? Time and Material contracts allow you to pay for materials and labor to be done in a certain amount of time. This is different from fixed-labor contracts because those don’t limit to a certain time frame. DataStreet provides solutions to subcontractors in the field for their T&M contracts and any change orders necessary.