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.
Tennessee Time and Material Building and Construction Contract — Owner to Supply Materials is a legally binding agreement commonly used in the construction industry. This document outlines the terms and conditions under which a construction project will be carried out, specifically focusing on projects where the owner is responsible for procuring the necessary materials. The Tennessee Time and Material Building and Construction Contract — Owner to Supply Materials establishes the responsibilities and obligations of both the owner and the contractor involved in the construction project. It ensures proper communication, understanding, and protection of all parties involved. The key elements typically included in this type of contract are as follows: 1. Project Details: This section provides a comprehensive description of the construction project, including location, scope of work, commencement date, and estimated completion date. 2. Materials and Supplies: The contract clearly defines that the owner is responsible for purchasing the required materials and supplies for the project. It might include specifications and quality standards to ensure the desired outcome. 3. Labor and Services: The contract specifies the contractor's obligations in terms of providing skilled labor, equipment, tools, and necessary permits. 4. Payment Terms: The payment structure, including the hourly rates for labor, handling fees, and any reimbursable expenses, is established in this section. The contract may also include provisions for change orders, retain age, and invoicing procedures. 5. Project Changes: Procedures for handling any changes to the scope of work or materials must be clearly defined, including how costs and timelines will be adjusted. 6. Termination and Dispute Resolution: This section outlines the conditions in which the contract can be terminated and the steps that should be followed in case of a dispute between the owner and the contractor. Different types or variations of the Tennessee Time and Material Building and Construction Contract — Owner to Supply Materials may exist based on the specific needs of the project or the preferences of the parties involved. Some common variations may include: 1. Lump-Sum T&M Contract: This is a modified version of the contract where certain aspects, such as specific materials or services, are priced on a lump-sum basis, while the remaining elements follow a time and material structure. 2. T&M with Guaranteed Maximum Price Contract: In this type of contract, the owner and contractor agree upon a maximum price for the project, providing a level of cost certainty while still employing the time and material structure. 3. T&M with Fixed Fee Contract: Here, the contractor charges a predetermined fixed fee instead of hourly or actual costs, simplifying the payment structure. In conclusion, the Tennessee Time and Material Building and Construction Contract — Owner to Supply Materials is a contractual agreement that lays out the terms and conditions for construction projects where the owner is responsible for procuring the materials. It ensures a clear understanding of responsibilities, payment terms, and dispute resolution, crucial for successful project completion. Variations of this contract exist, accommodating specific project requirements or preferences of the parties involved.
