time and materials
Pay as worked
Time and materials is a contract arrangement where the client pays for actual hours worked plus the cost of materials used, rather than a fixed price for the completed project.
Common in construction, consulting, and software development when scope is uncertain: We're billing this on a time and materials basis.
The approach shifts financial risk from contractor to client.
- cost plusPricing adding profit to expenses
- invoiceItemized billing statement
- costRequired payment amount
- unit pricingCost shown per measure
- expenseMoney paid out
nickel and dime · labor · sweat equity · punch the clock · billing · billable hours · scope of work · project management · competitive bidding · service agreements · budget · open ended · payment schedules · professional services · deliverables · fee · payment · rate
- contractsbinding contracts, contract length, lease, clause, contract terms
- procurementprocurement, purchasing, purchase order, bidding, subcontract
- project managementproject, project manager, task, tasks, deadline
- contract workcontract labor, contract work, contractors, subcontractors, freelancers
- billing typesmonthly billing, annual billing, hourly billing
- construction accountingjob costing, change orders, percent complete, work in progress, project budgets