Join Bob McGannon for an in-depth discussion in this video Using time-and-materials (T&M) contracts, part of Project Management Foundations: Procurement.
- In the world of dieting people look…for the super food with high nutrition and low calories.…In baseball, people look for the five tool player,…the person that can hit, hit for power,…throw, field, and is a fast runner.…The contracting world has a similar tool…the time and materials contract.…It can be applied to most any service purchase scenario,…but does require mindful ongoing management…by the project manager.…
Time and Material or T&M contracts are a hybrid…of both fixed price and cost plus contracts.…T&M contracts are typically used…for the purchase of services not products.…Most T&M contracts will have a fixed duration…for a certain number of months with an agreed amount…to be paid per hour or day for a specific skilled resource.…This type of contract is often used…when the work cannot be clearly specified,…and total costs cannot be reasonable estimated.…
Payment is based on the hours worked…by the seller not the work completed.…In addition, T&M contracts typically have…a not-to-exceed dollar value clause…
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- What is project procurement?
- Should you buy or build?
- Putting procurement tasks in your schedule
- Understanding contract types
- Ensuring flexibility with the statement of work
- Exploring payment scheduling options
- Testing your market
- Using RFIs, RFQs, and RFPs
- Overcoming challenges