T&M
Law & Legal abbreviation · Contract
| Stands for | Time and materials |
|---|---|
| Categories | Law & Legal |
T&M stands for Time and materials, a contract abbreviation also used in business.
Pricing method in which the client pays fixed hourly rates for labor, including overhead and profit, plus the actual cost of materials. It is used when the scope of work cannot be estimated accurately in advance, as with repairs, emergency work and some IT services.
Example: Change orders on this job will be billed T&M at $95 per hour plus parts.
Usage notes
Because the contractor has little incentive to limit hours, federal rules (FAR 16.601) allow T&M contracts only when no other type is suitable and require a ceiling price. Commercial T&M agreements often set a not-to-exceed (NTE) amount for the same reason.
Related abbreviations
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- APA – Asset purchase agreement
- AUP – Acceptable use policy
- BAA – Business associate agreement
- BATNA – Best alternative to a negotiated agreement
- CA – Confidentiality agreement
- CDA – Confidential disclosure agreement
- CIIAA – Confidential information and invention assignment agreement
- CISG – United Nations Convention on Contracts for the International Sale of…
- CLA – Contributor license agreement
- CPFF – Cost-plus-fixed-fee
- CRADA – Cooperative research and development agreement
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This entry is for general education and is not legal advice. Abbreviation use varies between institutions; always confirm in context.