Replies

1. 
   dieselpig | Jun 01, 2004 11:20pm | #1

   I've got a generic cost plus agreement I could send you, but no t&m contracts.  If you ask me, T&M is pretty much a "moonlighter's" agreement for someone who works for wages....not an actual contractor.  Not trying to sound uppity, but unless you adjust your labor rates to cover your overhead and profit.....you're not making money and will take a hit should something get wrecked or you have to provide a warranty down the road.  And if you're gonna do that, you might as well go cost plus.  Cost plus keeps everything out in the open for the HO and provides you with your necessary P/O to run your business and you will be compensated for all the time you invest in the job.

   Just my humble opinion.

2. 
   JerraldHayes | Jun 02, 2004 12:15am | #2

   I don't know about finding a free downloadable Time & Materials contract online and would wonder about it reliability if I did but the sources I can think of off the top of my head are:View Image

   The Contractor's Legal Kit: The Complete User-Friendly Legal Guide for Home Builders and Remodelers

   by Gary Ransone (which has just been revised as of this past April although I have seen the revised version of it yet). In it there is a good sample of a Cost Plus Fixed Fee contract which is a form of Time & Materials contracting. Still you always run any contract you want to use by an attorney to make sure it conforms to local and regional laws.

   And there is the AGC set of documents which are interpretations of the standard AIA agreements issued by the Associated General Contractors. The AGC e-STORE

   You might want to check out this post of mine under an older topic here regarding Cost plus contracts too.

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   View Image

   ParadigmProjects.com | Paradigm-360.com | Mac4Construction.com

3. 
   davidmeiland | Jun 02, 2004 01:05am | #3

   You need to cover many of the same things in your contract, whether payment is lump sum or hourly/t&m/cost-plus/whatever. The contracts aren't that much different.

   Presumably you have a section of your existing contract that describes the work to be done. In a lump sum contract this is probably lengthy and refers to the plans/specs etc. For t&m this section can be a brief description, and indicate that work will be performed at the owner's direction.

   You also have a section regarding costs and payment. For lump sum the cost is usually brief and refers to a payment schedule. For t&m this section is lengthy: rates for every person or classification on your crew, markups for materials and subs, etc., and last but not least a list of every activity that is chargeable and those that are not. Gotta have that or the customer will argue that so-and-so is not a chargeable activity (tuning the radio, sharpening the pencil, untying the lumber, sweeping up).

   If you haven't got a contract already, I suggest you pick up and read the legal kit the Jerrald is referring you to, also David Gerstel's book, and then finally go to an attorney for some consultation. You don't need the attorney to write it, but they can finalize it for you.