Construction glossary
Time and materials (T&M)
Also called T&M, T and M, cost-plus extras.
Time and materials means the owner pays for the hours, iron, and materials that were actually used, at rates agreed in advance. It is how most extras, force-account work, and undefined scope get billed.
T&M versus lump sum
Lump sum prices a defined scope. T&M prices uncertainty. Once the extra is defined well enough to lump, many jobs convert. Until then, the ticket has to carry class, hours, and the signed rate — not a guess.
What has to be agreed first
The rate sheet, overtime rules, standby, portal-to-portal, and whether a foreman or super is billable. If those are verbal, the LEM becomes a negotiation. SubTrack locks the sheet to the project so every ticket reads the same numbers.
Time and materials FAQ
Is T&M the same as cost-plus?
Close. Cost-plus often marks up actual cost. T&M usually bills published charge-out rates that already include burden, overhead, and margin.
Can I bill T&M without a rate sheet?
You can try. The invoice will be argued. The sheet is the contract for the extra.
Use your agreed rates on every daily ticket.
These public ranges are a benchmark. SubTrack stores the rates you agreed with the client on a project rate sheet. Crews apply those rates to labor, equipment, materials, and subcontractors on the daily ticket. The same figures carry into reporting and the billing documents you send.