Time and material has elements of both the unit price and cost plus approach. The owner pays the contractor on the basis of effort expended, but there is no fee as such. An important element of this method is that these labor and equipment costs must include all indirect and overhead expenses, profit and contingency, in lieu of payment of any extra "fee." Such a contract may include a list of hourly payment rates, for carpenters etc., with a premium in normal hourly rates to include indirect expenses and overhead.
Michigan Time and Material Building and Construction Contract — Owner to Supply Materials is a legal agreement that outlines the conditions and terms of a construction project in the state of Michigan. This type of contract is specifically designed for projects where the owner has an active role in procuring and supplying materials needed for construction. By opting for a Michigan Time and Material Building and Construction Contract — Owner to Supply Materials, the owner takes on the responsibility of sourcing and providing the necessary materials, while the contractor is primarily responsible for the construction services. This arrangement allows for greater control and flexibility in terms of material selection and cost management. Key features of a Michigan Time and Material Building and Construction Contract — Owner to Supply Materials may include: 1. Scope of Work: This section of the contract clearly outlines the specific tasks, responsibilities, and objectives of the construction project. It defines the scope and details of the work to be performed by the contractor. 2. Materials and Supply: The contract specifies that the owner is responsible for procuring and supplying materials required for the project. This includes construction materials, equipment, and any other relevant supplies. The contract may also outline the procedure and timeline for the owner to deliver the materials to the project site. 3. Cost and Payment: The contract outlines the agreed-upon rates for labor and equipment provided by the contractor. It also details how the costs of materials supplied by the owner will be handled. This may involve reimbursement of the actual cost of materials or a prepared markup percentage. The contract should clearly state the payment schedule and any provisions for change orders or additional costs. 4. Duration and Completion: A time frame for the overall project is defined in this section, including expectations for completion and any relevant deadlines. The contract may outline penalties or bonuses associated with meeting or exceeding the agreed-upon schedule. 5. Change Orders and Modifications: This section addresses how modifications to the scope of work, materials, or costs will be handled during the construction process. It describes the process for addressing change orders, including obtaining written approval and any amendments to the contract terms. There may be variations or additional types of Michigan Time and Material Building and Construction Contracts — Owner to Supply Materials, such as: 1. Residential Contracts: Specifically tailored for residential construction projects, these contracts focus on the unique requirements and regulations associated with residential properties. 2. Commercial Contracts: These contracts apply to non-residential construction projects, such as commercial buildings, offices, or retail spaces. They may involve additional considerations such as zoning regulations, permits, and specialized construction requirements. 3. Government Contracts: Contracts designed for construction projects commissioned by government entities at the local, state, or federal level. These contracts often have specific rules, regulations, and reporting requirements to ensure compliance with government guidelines. In summary, a Michigan Time and Material Building and Construction Contract — Owner to Supply Materials is a contractual agreement that provides guidelines and regulations for construction projects where the owner is responsible for procuring and supplying materials. Specific variations of this contract exist for residential, commercial, and government projects, each adjusted to meet their unique requirements.
