Time and Materials Contracts

When it comes to drawing up a contract for a construction job or other contracted project, business owners often prefer to have fixed-rate contracts that ensure that the job is completed for a certain price, and any shortage of supplies or extra time needed to complete the job is the contractor's responsibility. In some cases, the contractor will refuse to do the work at a fixed-rate and may ask for a contract that takes time and materials into special consideration.

If you are a business owner looking to have a project completed, you may wish to have an experienced business attorney on your side to help with contracts, employment agreements, and other legal issues. For help with a fixed rate or time and materials contract, contact the Austin business lawyers of Slater, Kennon & Jameson, LLP at 512-472-2431 today.

Common Considerations in Time and Materials Contracts

When drawing up a time and materials contract, the following considerations are usually taken into account:

• A fixed labor rate rather than estimated or “list price” labor rates. In some cases, businesses will even negotiate a lower fixed rate for time and materials contracts
• Cap on maximum number of hours for completion of the job to prevent serious overages or abuse of labor costs
• Negotiations on material mark-ups - Business owners may be able to negotiate down the mark-up suppliers or contractors add to the materials used on a project
• Establishing a “not to exceed total” or NTE to set limits on the overall cost of the project including labor and materials

An experienced business attorney can help you with time and materials contracts and other essential tools to make sure your project is completed on time and within the budget allowed.

Contact Us

For help with contracts or other important legal issues for your business, contact the Austin business lawyers of Slater, Kennon & Jameson, LLP at 512-472-2431.