Time and Materials Agreement (T&M)

A Time and Materials Agreement (T&M) is a contract where the client pays the service provider based on the actual time spent and materials used in completing a project. This agreement outlines the hourly rates for labor and the costs of materials, as well as any additional expenses. T&M agreements are often used when the scope of work is not well-defined or may change over time. Regular tracking of time and materials helps ensure transparency and allows for accurate billing and cost management.