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What is Time and Materials?

Researched by the Is My Quote Fair? editorial teamLast reviewed: 2026-06-01

Quick answer

A time and materials (T&M) contract bills you for hours worked at a set labor rate plus actual material costs, usually with a markup on materials.

A time and materials (T&M) contract bills you for hours worked at a set labor rate plus actual material costs, usually with a markup on materials. It's common for small repairs and unknown-scope work.

Examples

  • $125/hour plus materials at cost + 20% for diagnostic plumbing work.
  • Emergency electrical repair billed hourly.
  • T&M with a not-to-exceed cap for scoping work.

Why this matters

Is My Quote Fair? flags T&M quotes without a not-to-exceed cap — the single biggest cause of sticker shock on small jobs.

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Frequently asked questions

What is Time and Materials?

A time and materials (T&M) contract bills you for hours worked at a set labor rate plus actual material costs, usually with a markup on materials. It's common for small repairs and unknown-scope work.

When does Time and Materials matter?

Is My Quote Fair? flags T&M quotes without a not-to-exceed cap — the single biggest cause of sticker shock on small jobs.

What's an example of Time and Materials?

$125/hour plus materials at cost + 20% for diagnostic plumbing work. Emergency electrical repair billed hourly. T&M with a not-to-exceed cap for scoping work.

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