T&M Agreement Sample

A Time and Materials (T&M) Agreement is a type of contract that outlines the terms and conditions for a project or service that is based on the actual hours worked and materials used.

This type of agreement is commonly used in industries where the scope of work cannot be accurately determined upfront, such as construction, consulting, and software development. T&M agreements allow for flexibility in the pricing and duration of a project, making them a popular choice for clients and contractors alike.

Here is a sample T&M agreement:

1. Scope of work: The contractor agrees to provide services as outlined in the scope of work document provided by the client.

2. Time and materials: The contractor will be compensated for actual hours worked at the agreed hourly rate and the cost of any materials used. The hourly rate and material costs will be agreed upon in advance and may be subject to change with prior written agreement from both parties.

3. Payment terms: The client agrees to pay the contractor for all services rendered on a weekly or monthly basis, depending on the agreed-upon schedule. Invoices will be submitted by the contractor and are due upon receipt.

4. Expenses: The contractor will be reimbursed for all reasonable and necessary expenses incurred in the performance of the services, subject to prior written approval from the client.

5. Intellectual property rights: The client will retain all intellectual property rights to any work created or developed under this agreement.

6. Termination: Either party may terminate this agreement with prior written notice to the other party. Upon termination, the contractor shall be entitled to payment for any work performed and expenses incurred up to the date of termination.

7. Confidentiality: Both parties agree to maintain the confidentiality of any information or data exchanged during the term of this agreement.

8. Limitation of liability: The contractor’s liability under this agreement shall be limited to the amount paid by the client for the services rendered.

Overall, a T&M Agreement provides a fair and flexible framework for clients and contractors to work together on projects. It is important to have a clear understanding of the terms and conditions of the agreement before starting any work.