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In this tutorial, Matt, a contracting officer, explains time and materials contracts commonly used in construction and product development. This type of contract involves being paid for both time and materials used in the project. Time and materials contracts are preferred when project size or changes cannot be accurately estimated, in contrast to fixed price contracts. Federal regulations outline detailed guidelines for time and materials contracts, including fixed hourly rates and costs for labor, overhead, and materials. These contracts are best suited for projects where costs and timelines are uncertain.
