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Welcome to Act Notes Tutorials. My name is Matt, and I am a contracting officer providing a tutorial on time and materials contracts. This type of contract is common in construction and product development, where payment is based on time and material used. Time and materials contracts are used when project size or changes are hard to estimate. These contracts are detailed in Federal Acquisition Regulation Subpart 16.6, where services or supplies are acquired based on direct labor hours and fixed hourly rates. They should be used when project scope is uncertain.
