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hey friends in todays video i explain the three basic types of contracts fixed price time and materials and cost plus and this is important because the contract type affects your risk of doing the job and how you price your bid the first contract type is a firm fixed price contract youll bid a fixed price to complete a job so lets say you bid ten thousand dollars and you get awarded the contract when the contract is over youll submit an invoice for ten thousand dollars it doesnt matter whether it only cost you five thousand dollars to do the job or it cost you fifteen thousand dollars to do the job so these types of contracts carry the greatest risk but can also be the most profitable for you the second type of contract is time and materials with the time and materials contract youre paid for labor hours at fixed hourly billing rates and the contract also covers the cost of materials a liquor hour contract is a variation of this where youre just supplying labor hours and not ma
