With a Time and Materials (T&M) contract
A) the customer pays a contracted fixed price that is estimated before the rpoject based on labor time and material
B) the contractor is reimbursed for direct labor hours at a specified per-person hourly rate plus material costs and a mark-up
C) the time represents the duration of the project (start to finish) and the materials are whatever was needed to produce the estimate
D) the contractor has an incentive to perform the work in the shortest time and with the fewest materials

Question

Quizplus · Accepted Answer

In a Time and Materials (T&M) contract, the contractor is paid for all labor hours at a pre-negotiated rate, plus the cost of materials and an added markup. This arrangement allows for flexibility in adjusting the scope of work, making it suitable for projects where the exact scope is not well-defined at the outset.

With a Time and Materials (T&M) Contract