What is a time and materials contract?
A time and materials contract is an agreement in which you pay the supplier for the hours actually worked at agreed rates, plus materials and expenses. The total is known only when the work ends.
Also called: T&M, time and materials contract
Why it matters
Time and materials suits work you cannot define yet: research, ongoing support or a product that changes every week. You keep full flexibility, but the budget risk sits with you, so you need regular reports, a cap or fixed review points. Without them, a project can drift.
1How billing worksLogged hours are invoiced weekly or monthly at the agreed hourly or day rate.
2Not-to-exceed capMany contracts add a ceiling, so the supplier must get your approval before spending beyond it.
3Vs fixed priceA fixed price sets the total in advance for a fixed scope; time and materials fixes only the rate.
ExampleA distributor in Karaganda knows the data exchange between 1C and its website keeps failing, but not exactly where. It hires a developer on time and materials with a monthly cap and regular reviews. Once the causes are clear, rebuilding the exchange is quoted at a fixed price.
On this topic
What we do
Fixed price or hourlyWhen a contract with a firm price fits, when hourly billing does, and who carries the risk of a wrong estimate.from 1 000 000 ₸Agency or freelancerWho should build your website or app: one person or a team, and what to put in the contract.from 540 000 ₸Support and maintenanceUpdates, fixes and a quick reply.price after the brief
Related terms
Fixed-price contractA contract where the price for an agreed scope is set before work starts and does not change.MVPThe smallest version of a product that real customers can use, built to test an idea.Technical debtThe future cost of shortcuts in code, which makes every later change slower and riskier.
Need to put this in place?
Describe the task, we will name the scope, price and timeline. The price is fixed in the contract.
Your selectionFixed price or hourlyfrom 1 000 000 ₸
The team gets your request; we reply during business hours.Price fixed in the contract before you pay.No calls unless you ask.