What is a Time & Materials contract?
A Time and Materials contract is a flexible working arrangement.
Employers hire and pay out based on hours worked and material used. A Time & Materials contract allows employers to avoid having to hire a contractor based on a fixed length or fixed price.
This type of contract is beneficial to employers hiring for projects where scope is unclear and undefined. A Time & Materials contract gives you a framework to work within ensuring you can hire as and when you need resource whilst limiting runaway costs with agreed pay rates.
- Average time to fill
- 3 days
- Positions filled
- Contracts extended
When is it best to use a Time & Materials contract?
The best use of a Time & Materials contract is dependent on your current situation.
Although, there are some particular use cases where you as an employer would choose to hire on a Time & Materials contract. For example, if a project is forecasted to go beyond expected project timelines and material costs have increased a Time and Materials contract could be the more beneficial option. By fixing agreed rates for a fair price, a Time and Materials contract can mitigate any unexpected project costs.
Of course, there are a multitude of scenarios where a Time & Materials contract would be your best option to use when hiring contractors.
Follow best practices for clear documentation, regular communication, comprehensive reporting, and efficient change management.