Time-and-Materials Contract (T&M)
Payment based on labor hours at fixed rates plus materials at cost.
Definition
T&M contracts bill fixed hourly labor category rates plus actual material costs, subject to a ceiling price the contractor exceeds at its own risk.
Why it matters
Labor category mapping determines profitability — mismatched staff to categories destroys margin.
Example
A support services task order with eight labor categories and a not-to-exceed ceiling.
Related terms
Stop translating solicitations by hand
RFP Scribe reads the solicitation, builds the compliance matrix, and drafts a response from your Company Brain in minutes.
Start freeServices that help with this
Buy just the piece you need — most start at a few dollars, no subscription required.
RFP Plain-English Summary
$3Translate jargon-heavy solicitations into clear, actionable language.
Buy NowGovCon Masterclass — Basics
$99Video courses on capture, proposals, and pricing strategy.
Enroll NowCompliance & Readability Scan
$2Verify your proposal addresses every stated requirement.
Buy Now