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Project Management & Agile · Foundational

Time and Materials Contract (T&M)

Hybrid contract with elements of fixed-price (unit rates) and cost-reimbursable (open total value).

Definition

Used for staff augmentation, expert services, or when scope cannot be precisely defined; a not-to-exceed value limits buyer risk.

Example

A consultant at $150/hour with a not-to-exceed cap of $30,000.

Exam tip

Add a not-to-exceed clause to protect the buyer.

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