Accurate tracking of all expenses on the site will help you collect your payment in case of disagreement at the end of the project. If you have expenses that are not taken into account in writing, you may not be paid for it. Some of these elements may be incorporated into a contract, others may not. Be aware of the risks of a time and hardware contract and make sure you have confidence that your client will not use your work. In this context, some of the advantages and disadvantages of a time and equipment contract are here: a time and equipment contract is appropriate in many construction situations. If you need a hand in the exact management of your site, contact us to find out how we can help. Time and equipment contracts (T-M) imply that both parties agree on a pre-defined one-time rate for work and materials, and there is no default price for construction. This type of contract is used when it is not possible to obtain an accurate estimate of the total cost of the project, if the schedule cannot be defined or if changes are likely to be made during construction. A contract of duration and equipment generally represents the highest risk to the owner or customer and the least risk to the contractor, as there is no limit to the duration of the project or the cost of that project. If schedules change, you`ll need flexibility to take into account longer working hours and overtime. If supplements are provided or parts of the project are discontinued, you must be able to account for them in the final cost.

Construction of apartment buildings, business buildings and even houses can take months. If you work with a defined plan and schedule and know your industry, it`s relatively easy to know how much you need to charge to make a profit. There is a risk associated with a contract of time and equipment. If you want to adopt this model, make sure you are aware of it and accept the consequences. If you are a new contractor, you may not be aware of the hidden costs, expenses and overheads you need to cover. You may not be sure how much material to mark or where you will discount for long-term projects. Looking for a reliable software partner with proven methods to carry out agile projects under Time -Materials conditions? Find out why you should choose Merix! To be honest, this is not possible, especially for startups.