Time & Materials

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pmpstudent
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Joined: Tue Dec 10, 2013 11:08 am

Time & Materials

Postby pmpstudent Wed Mar 05, 2014 2:32 pm

Time & Materials – You have mentioned in your presentation, time & materials is a hybrid variety between fixed price and Cost reimbursable price contract. I know in Time and Materials, they will fix the Unit rate of materials or rate per hour for labours, which element they will open???
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saket
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Re: Time & Materials

Postby saket Wed Mar 05, 2014 2:36 pm

You are right in time and material we fix the Unit rate but how many units will consumed that part remain open...so buyer still has to pay if the work takes more than estimated hours.

For example you contract one painter to do a paint in a flat, he estimate that it will take 5 days and his daily rate is 50 USD , now the daily rate is fixed but not the time... so if he takes 6 days to complete you end up paying 50*6 = 300 USD. The rate 50 is fixed but not the time...
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