Time and Materials
Time and Materials is a common payment model for contracting work where clients pay based on the actual time spent and materials used, rather than a fixed price. Think of it like paying a lawyer by the hour plus expenses. This approach is often used when the exact scope of work isn't clear upfront or might change during the project. It's different from "Fixed Price" contracts where one price is set at the start. Companies often use this model for software development, consulting, or construction projects where flexibility is needed.
Examples in Resumes
Managed Time and Materials contracts worth $2M annually with enterprise clients
Led negotiations for T&M project agreements with Fortune 500 companies
Successfully delivered 15+ Time & Materials projects under budget
Typical job title: "Contract Managers"
Also try searching for:
Where to Find Contract Managers
Professional Organizations
Online Communities
Job Boards
Example Interview Questions
Senior Level Questions
Q: How do you handle scope changes in a Time and Materials project?
Expected Answer: Should explain process of tracking changes, communicating with clients about additional hours/costs, and maintaining transparent documentation of all changes and approvals.
Q: What strategies do you use to keep Time and Materials projects within budget?
Expected Answer: Should discuss regular budget tracking, early warning systems for overruns, resource optimization, and proactive client communication about spending patterns.
Mid Level Questions
Q: How do you track and bill time and materials effectively?
Expected Answer: Should explain systems for accurate time tracking, material cost documentation, and regular client reporting processes.
Q: What are the key differences between Fixed Price and Time and Materials contracts?
Expected Answer: Should compare flexibility, risk allocation, billing methods, and explain when each type is most appropriate.
Junior Level Questions
Q: What basic elements should be included in a Time and Materials contract?
Expected Answer: Should mention hourly rates, material markup policies, payment terms, and basic reporting requirements.
Q: How do you document time spent on different tasks?
Expected Answer: Should describe basic time tracking methods, timesheet systems, and importance of detailed activity descriptions.
Experience Level Indicators
Junior (0-2 years)
- Basic contract understanding
- Time tracking and reporting
- Client communication
- Basic budget monitoring
Mid (2-5 years)
- Contract negotiation
- Budget management
- Resource allocation
- Risk assessment
Senior (5+ years)
- Strategic planning
- Complex contract management
- Client relationship management
- Team leadership
Red Flags to Watch For
- No experience with contract management software
- Poor understanding of billing practices
- Lack of client communication skills
- No experience with budget tracking
- Unable to explain difference between T&M and Fixed Price contracts
