Finance & Contracts

T&M (Time and Materials)

A contract type where the contractor bills for actual labor hours and materials used, plus markup.

T&M billing is common for service work and unknown-scope repairs. The contractor bills labor at an hourly rate (typically including burden and markup) plus materials at cost or with a markup. T&M shifts scope risk to the owner — total cost is unknown until work is complete. Most plumbers, electricians, and HVAC service techs run T&M for unscheduled repairs. Photo and time documentation is critical for T&M disputes.