Time and Materials

What is time and materials?

Time and materials (T&M) is a way of pricing work where you bill for the labour hours spent at an hourly rate, plus the materials used, usually with a markup. It is common for repairs, renovations, and jobs where the full scope is hard to know upfront.

The client pays for what the job actually takes, and you are protected if the work turns out bigger than expected.

What goes on a time and materials invoice

A clear T&M invoice shows:

• Labour: Billable hours by date or task, multiplied by the hourly rate
• Materials: Each item with quantity, unit price, and any markup applied
• Other costs: Equipment rental, disposal fees, or travel if agreed
• Totals: A subtotal, applicable tax, and the final total

Time and materials vs. fixed price

With a fixed-price quote, you take on the risk if a job runs over. With time and materials, the client carries that risk. Many contractors use T&M with a not-to-exceed cap so clients still have cost certainty, and they send a written estimate of expected hours before starting.