Node A6 · Acronym decoder
T&M
Time and Materials
What it actually means
A contract type paying fixed hourly labor rates plus materials at cost — used when the scope can't be defined well enough to price even a cost-plus effort. It carries the least incentive for contractor efficiency of any type, so the FAR requires justification and a ceiling, and auditors watch T&M hours closely.
Where you'll meet it
Repair work, support services, and other genuinely unpredictable scopes.