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.
Nebraska Time and Material Building and Construction Contract — Owner to Supply Materials is a legally binding agreement between the owner of a construction project and the contractor. This type of contract is commonly used in the construction industry when the owner wishes to provide the necessary materials for the project instead of relying on the contractor to procure them. A time and material contract is based on the actual time spent and materials used during the construction process, rather than a fixed project cost. This allows for flexibility in terms of project scope and allows the owner to have more control over the materials used. The contractor is typically compensated for their labor on an hourly basis, and a markup may be added to cover indirect costs, such as supervision and administrative expenses. Some key elements included in a Nebraska Time and Material Building and Construction Contract — Owner to Supply Materials are: 1. Scope of Work: The contract should clearly define the project's scope, outlining the tasks and responsibilities of the contractor. 2. Materials: The owner is responsible for supplying the necessary materials, which must meet industry standards and project specifications. 3. Labor Rates: The hourly rates for the contractor's labor, as well as any additional charges for specialized labor, should be specified in the contract. 4. Markups: The contractor is entitled to add a markup percentage to cover indirect costs associated with the project, which should also be clearly stated. 5. Payment Terms: The contract should outline the payment schedule, including the frequency of payments and any applicable penalties for late payments. 6. Change Orders: Procedures for handling change orders, including how they will be documented, approved, and compensated, should be included in the contract. It's worth noting that within Nebraska, there may be different variations or types of Time and Material Building and Construction Contracts. These might include variations based on project size, complexity, or specific requirements dictated by local authorities or industry standards. It is always essential to consult with legal professionals, reviewing and customizing the contract to fit specific project needs while adhering to Nebraska's construction laws and regulations.
