Time and materials

Time and materials is a standard phrase in a contract for construction, product development or any other piece of work in which the employer agrees to pay the contractor based upon the time spent by the contractor's employees and subcontractors employees to perform the work, and for materials used in the construction (plus the contractor's mark up), no matter how much work is required to complete construction. Time and Materials is generally used in projects in which it is not possible to accurately estimate the size of the project, or when it is expected that the project requirements would most likely change.

This is opposed to a fixed-price contract in which the owner agrees to pay the contractor a lump sum for fulfillment of the contract no matter what the contractors pay their employees, sub-contractors and suppliers.

Many time and materials contracts also carry a guaranteed maximum price, which puts an upper limit on what the contractor may charge, but also allow the owner to pay a lesser amount if the job is completed more quickly.

Holidays

Client pay to employees for official holidays.

See also

This article is issued from Wikipedia - version of the Sunday, March 20, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.