What is time and materials (t&m)?
Time and Materials (T&M). A pricing method that bills actual labor hours plus materials (with markup), rather than a fixed price agreed up front.
Why it matters to your pricing
T&M fits open-ended or diagnostic work where scope is unknown. It only protects you if your labor rate is fully burdened and your hours are tracked honestly.
This is a general educational definition, not financial or legal advice. Confirm anything regulated with your accountant or state board.