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In this tutorial, Matt, a contracting officer, explains the concept of a time and materials contract, commonly used in construction and product development. This type of contract involves payment for the time and materials utilized in a project, suitable for situations where project size and changes are difficult to estimate. Unlike a fixed price contract, a time and materials contract includes fixed hourly rates covering labor, overhead, expenses, profit, and material costs. This type of contract is recommended when project scope and changes are uncertain.
