How T&M Contracts Help with Flexibility
T&M contracts offer greater flexibility for both the Client and contractor, as they allow for changes in the project scope as it progresses. The contractor is compensated for actual costs, making this contract suitable for projects where the duration or amount of materials needed is difficult to estimate. However, clients need to monitor spending carefully to avoid Cost Escalation. ## Best Practices for Managing T&M Contracts Clear documentation of labour hours and materials used is essential to ensure transparency and prevent disputes. Contractors should regularly update the client on costs to keep the project within budget. It’s also advisable to set a not-to-exceed limit to protect the client from runaway costs.Related Terms: Cost-Plus Contract, Supplier