Time And Material Agreement

 
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Old 02-04-2018, 11:42 AM   #1
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Time And Material Agreement


I'm looking for some examples of an agreement I'd have customer sign when doing interior remodeling on a time and materials agreement. Any insight is appreciated. I usually write a contract with set prices for each job I get in to. I hope to find a standard document for my clients to sign before scheduling them for a job that we'll be performing on time and material. Please help! I've had this topic on my mind for years!!! I want to get this locked down.
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Old 02-04-2018, 01:03 PM   #2
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Re: Time And Material Agreement


Get familiar with AIA documents.

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Old 02-04-2018, 01:51 PM   #3
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Re: Time And Material Agreement


Shouldn't be too difficult, I normally use my standard proposal then add something like this:

This project will be built on a time & material basis, charged as follows:

Laborer $00.00 / hr
Skilled Tradesperson $00.00 / hr
Supervisor $00.00 / hr

No charge for office administrative time or site visits.

Materials and rental equipment will be marked X% for state tax, then XX% for contractors overhead and profit.

Subcontractors will be marked up XX% for contractors overhead and profit.

No charge for contractor tools valued under $500 replacement value.
Large contractor owned tools will be billed at rates lesser than or equal to prevailing local rental rates.

Monthly billing will include an accounting summary illustrating charges. Copies of all receipts and invoices will be available for review in our office if necessary. Payment is due within 15 days of date on invoice, no retainage shall be withheld from monthly billings.


Many clients also like to see a "not to exceed" amount so they don't feel like they are turning you loose with an open checkbook. Have also done deals where we split any savings we could beat the not to exceed amount by which is good incentive for supervision to earn a bonus.
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Old 02-04-2018, 02:49 PM   #4
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Re: Time And Material Agreement


Okay. That is some useful feedback. Projects larger than 1 day I don't expect to sell on a time and material contract. I'm trying to get a handle on smaller repair/ remodel jobs. Sending a lead and a laborer to change a vanity or seal a leaking gutter. What do you say about that?
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Old 02-04-2018, 04:40 PM   #5
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Re: Time And Material Agreement


There are a number of good sources for the boilerplate contracts. AIA, Associated General Contractors, NAHB Contract Documents and ConsensusDocs all come to mind. You should give them all a good read and decide for yourself if they fit your business and your situation. I am not personally comfortable with the AIA documents.
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