Time & materials (T&M): definition, example, and why it matters
Common for unknown-scope work like emergency repairs. Risky for the customer (no price cap) so most T&M jobs include a not-to-exceed clause that converts to a change order if breached.
Short definition. Billing actual hours worked plus actual cost of materials with markup.
Category. Time & materials (T&M) is a invoicing term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds time & materials (t&m) into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does time & materials (t&m) mean?
Common for unknown-scope work like emergency repairs. Risky for the customer (no price cap) so most T&M jobs include a not-to-exceed clause that converts to a change order if breached.
Related terms
Flat-rate pricing — Charging a fixed price for a job regardless of how long it actually takes.
Markup — The percentage added to your cost to determine the customer-facing sell price.
Labor rate — The hourly rate billed for skilled labor — distinct from a tech's actual wage.
