My background is Gov’t acquisition
T&M and Cost contracts have very specific meanings to me, that are different they way they are used here.
What do these terms mean to you?
just for reference this is what they mean to me.
T&M you pay for time and materials, not for having something made, for example you want kitchen cabinets made and installed. you pay for T&M for the work, but not for the cabinets or installion. the delivery is labour and materials, not a finished product.
Cost you pay the cost whatever it is to have somethong done. you want kithchen cabinets built and installed you pay whatever it costs to have it done. the delivery is for installed kitchen cabinets.
I did simplify and didn’t get into details or different aspects.
bobl Volo Non Voleo
Replies
Here's what I'm thinking.
T&M-Time and Materials. The total money due for all labor, subs, and materials of anykind.
Cost plus- The total money due for all the labor, subs and materials of anykind Plus whatever percentage is noted beforehand. This percentage is on all the above.
There is no simplification.
Remodeling Contractor just outside the Glass City.
Quittin' Time
bob.. calvin has basically laid it out
Cost is Cost.. = (Time & Materials + anything else allowed in the contract as a legitimate cost)
this will include office trailers, some back office labor, paper clips, cell phones.. if you can imagine it, it will probably be included.. especially on a govt. job
Time & Materials is another form of contracting where the materials and what is allowed to be charged for them is defined, and the labor and what is allowed to be charged for labor is also defined..
the larger the contract document , the more inclusive the list of what is allowed to be charged to the contract
most builders are not sophisticated enough to really include all of the things you would be experienced with in your govt. contracting career..
a normal T& M builder's idea would be i'll charge you $45 / hr for each guy i have on the job.. and any materials or subcontracts i supply at my cost plus a certain percentage of markup ..
there is a lot of stuff that falls thru the cracks.. and usually leads to disputes or ill -feelings...Mike Smith Rhode Island : Design / Build / Repair / Restore
My experience is as Calvin described.
T&M is usually for very small repair type jobs.
Cost plus is what I'd expect from any legit contractor who isn't bidding.Any jackass can kick down a barn, but it takes a carpenter to build one.
That's pretty much it for me.
On T&M, I have a rate for carpenters and another for labor.
This would apply to basic repairs or a jhob like a porch replacement that I and my crew can do.
A cost plus contract for me is usually when I am involved managing other subs as well. In addition to the time of my crew as a cost item, the bills I recieve from subs such as concrete, painters, electricians, and plumbers are also part of the cost of a job. On some jobs, Excavators or equptment rental are costs too. If I have a telephone and electrical service bill to pay or a portapotty on site, these are costs directly attributable as cost items for that job. If I nee to have cutters ground to mill custom architectural moldings, that is a cost. If the client lives in France during the winter while work is ongoing and he wants samples expressed to him or a long distance phone call or fax, that is a direct job related cost.
On such a large job, I might only be working on billable hours direct for three or four hours a day but be totally mentally and financially tied up in that job. I need the "PLUS" percentage to make my business viable and to reward me for the agravation and risks. .
Excellence is its own reward!
thanks guys for helping me understandbobl Volo Non Voleo