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Welcome to ACT Notes Tutorials! I am Matt, a contracting officer, and in this tutorial, I will explain the time and materials contract type. This type of contract is commonly used in construction and product development, where payments are made for both time and materials used. Time and materials contracts are ideal when project size and changes during development cannot be estimated. Unlike fixed price contracts, time and materials contracts detailed in federal regulations involve payment based on direct labor hours and material costs. Use a time and materials contract when project uncertainties exist.
