time and materials (T&M) contract
Definition
Arrangement in which a contractor is paid on the basis of (1) actual cost of direct labor, usually at specified hourly rates, (2) actual cost of materials and equipment usage, and (3) agreed upon fixed add-on to cover the contractor's overheads and profit (income).
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time and materials (T&M) contract is in the Agreements & Contracts and Purchasing & Procurement subjects.
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