What it means
On a T&M job, the contractor records the hours worked and the materials used, then bills for them. Labor is billed at agreed hourly rates, which may differ by worker classification. Materials are usually billed at cost plus a markup, or at agreed prices. Some T&M work has a “not-to-exceed” limit.
Electrical contractors use T&M for service calls, troubleshooting, small jobs and change orders where the scope isn’t clear enough to price in advance. Because the bill depends on the records, accurate time tracking and material records — often signed off by the customer — are essential.
An example: a contractor is called to trace an intermittent fault in a restaurant’s kitchen equipment circuits. The job is billed at the agreed hourly rate for the technician’s time plus the parts used, at the contractor’s standard material markup, with the ticket signed by the manager on site.
Why it matters
- Getting paid fairly. T&M lets contractors be paid for work that’s hard to price up front.
- Records. Missing hours or materials mean lost revenue, and unclear records lead to disputes.
- Consistent pricing. Material markups should be applied the same way on every ticket.