Contract Types: T&M vs Fixed Price
Definition
Time and materials (T&M) charges based on actual hours and materials used. Fixed price charges a single agreed amount for a defined scope. T&M suits open-ended work; fixed price suits clearly defined scopes.
Common Questions
Real-World Example
CRM Services uses T&M for a water damage investigation, then writes a fixed-price bid for the repair phase.
Why It Matters
CRM Services uses both depending on project complexity.
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