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In this tutorial, Matt, a contracting officer, explains the key points of a time and materials contract. This type of contract is commonly used in construction and product development when the size of the project or potential changes cannot be accurately estimated. Unlike fixed price contracts, time and materials contracts involve payment for both labor and materials used. Federal regulations detail how these contracts are structured, including hourly rates and cost breakdowns. Time and materials contracts should be used when project scope or changes are uncertain.
