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Matt, a contracting officer, provides a tutorial on time and materials contracts which are used in construction and product development. In this type of contract, a company or employee is paid for their time and materials used for the project. Time and materials contracts are used when project size cannot be estimated or changes are expected. This type of contract is detailed in federal acquisition regulation subpart 16.6 and involves acquiring supplies or services based on direct labor hours and fixed hourly rates. This contract should be used when project scope cannot be accurately determined.
