Labor and materials (time and materials) - sustany/dvg GitHub Wiki

A type of contract by which the customer agrees to pay a contractor the cost of labor and materials used in a job, plus a predetermined percent markup. In contrast, a fixed price contract is where the parties negotiate a lump sum price for the entire job prior to work commencing. Time�and�materials�contracts are useful when it is�not�possible�at the time of contracting to estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of confidence.