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Time and Materials Contract Template – Texas
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Time and Materials Contract Template
1. Work Order and Deliverables
Project/Work Order Name: [Project Name].
Services to be provided: [Deliverables → Tasks → Acceptance Criteria].
Excluded Work (if any): [Excluded Work].
2. Parties
This Time and Materials Contract ("Agreement") is made and entered into on [Date], by and between:
Client: [Full Legal Name / Company Name] Address: [Client Address] Contact: [Phone, Email]
Contractor: [Full Legal Name / Company Name] Address: [Contractor Address] Contact: [Phone, Email]
Together referred to as the "Parties."
3. Compensation
Labor Rates: $[Rate] per hour/day for [Position/Role].
Materials: Billed at actual cost plus [X%] markup.
Premium Rates (if any): [After-hours/Weekend/Emergency] at $[Rate] for [Defined Trigger].
4. Invoices and Payment
Invoices: Issued [weekly/monthly] with detailed records of time and materials.
Payment Due: Within [X] days of invoice receipt.
Late payments may incur interest of [X%] per month.
5. Records and Availability
The Contractor shall maintain accurate records of time worked and materials purchased.
Records must be made available to the Client upon request using [Reference ID/File ID].
6. Changes to Work
Any changes to scope, rates, or schedule must be documented in writing and signed by both Parties.
Authorized Client Approver(s): [Name/Title].
7. Term, Termination, and General Terms
This Agreement begins on [Start Date] and continues until [End Date/Completion of Work], unless terminated earlier.
Either Party may terminate with [X days] written notice; the Client shall pay for all work performed and materials purchased up to termination.
Work will be performed in a professional manner consistent with industry standards.
Each Party shall keep confidential information exchanged under this Agreement private.
The Contractor shall indemnify and hold harmless the Client from claims resulting from the Contractor’s work, except where caused by the Client’s negligence.
This Agreement shall be governed by the laws of the State of Texas.
This Agreement represents the entire understanding between the Parties and supersedes prior written or verbal communications.
8. MODULE: Change Order Register
CO # | Description | Approved By | Approval Date | Rate Impact | Materials Impact | Status |
[CO-001] | [Description] | [Name/Title] | [MM/DD/YYYY] | [None/Updated] | [None/Updated] | [Open/Closed] |
[CO-002] | [Description] | [Name/Title] | [MM/DD/YYYY] | [None/Updated] | [None/Updated] | [Open/Closed] |
9. MODULE: Subcontractors and Key Personnel
Subcontractors (if any): [Names/Companies] with rates of $[Rate] for [Role].
Client Pre-Approval Required For: [All subcontractors/Only named roles/None].
Key Personnel: [Project Lead/Architect/Foreman] may be replaced with notice to [Client Contact] and approval by [Approver] if required.
10. MODULE: Travel and Expenses
Reimbursable Expenses (if any): [Travel/Lodging/Mileage/Per Diem/Tools/Other].
Expense Approval Threshold: $[Amount] requires written approval by [Approver].
Backup Documentation: [Receipt Ref ID / Vendor Invoice Ref ID].
11. MODULE: Signatures
Client Authorized Signer: ___________________________ Date: _________ Name/Title: [Full Name, Title]
Client Technical Lead (Approval Contact): ___________________________ Date: _________ Name/Title: [Full Name, Title]
Contractor Authorized Signer: ________________________ Date: _________ Name/Title: [Full Name, Title]
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Learn more about
Time and Materials Contract Template – Texas
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
Texas Time and Materials Contract Template FAQ
Why is a change order register helpful in a time and materials contract?
A change order register creates a simple running record of what changed, who approved it, and whether it affected rates, schedule, or materials purchasing. In time and materials projects, changes can happen frequently, and relying on scattered emails can lead to disputes about what was authorized. A register helps both parties track approvals in one place and keeps the invoice aligned with documented scope adjustments. It also supports budgeting because the client can see how changes accumulate over time. The goal is clarity, not bureaucracy.
How should subcontractors be handled under a T&M agreement?
If subcontractors may be used, the contract should state whether the client must pre-approve subcontractors, whether subcontractor rates are included in the rate card, and how subcontractor invoices will be documented. Clients often want transparency about who is performing work and at what rate to ensure consistency with the agreement. Defining responsibility for subcontractor management also avoids confusion if performance issues arise. The contract can require subcontractors to follow the same confidentiality and work standards as the contractor. Clear rules reduce surprises and keep invoice review consistent.
Can a T&M contract include premium rates for after-hours work?
Yes, but premium rates should be stated clearly and applied consistently. Common approaches include separate after-hours rates, weekend rates, or emergency response rates tied to defined circumstances. If the client wants to control premium time, the contract can require prior written approval except for narrowly defined urgent situations. Premium billing is easier to manage when time entries identify the reason for premium work and who authorized it. Without clear triggers and approvals, premium charges are a frequent source of dispute, so a simple rule set helps.
What is a reasonable way to document travel and expense charges?
Travel and expenses are easiest to handle when the contract requires pre-approval for categories like airfare, lodging, or equipment rentals and requires receipts or reference IDs for reimbursement. The parties can also define whether expenses are billed at cost or at cost plus a stated handling percentage. If mileage is billed, stating the rate and what trips are reimbursable reduces debate. Clear documentation helps the client validate charges and helps the contractor recover legitimate costs without delays. A short expense section can prevent a long argument later.
How should key personnel changes be managed mid-project?
Key personnel changes can affect efficiency and cost, so many agreements require notice and approval when a project lead or specialized role is replaced. If the rate card is role-based, staffing changes may not change rates, but they can still impact outcomes and timelines. The contract can require the contractor to provide a replacement with comparable qualifications and to document the effective date of the change. This protects the client’s expectations without locking the contractor into a single individual. Clear rules reduce disruption and avoid billing confusion.
Can AI Lawyer help me standardize my approvals and invoice backup?
AI Lawyer can help you build a time and materials contract that matches your operational workflow by adding a change order register, defining who can approve work, and structuring the required invoice backup in a consistent way. That can reduce delays when invoices move between project managers and finance teams, because the documentation expectations are already defined. You still choose the commercial terms, but a structured template makes it easier to enforce them. The result is often fewer disputes and faster payment cycles.
Is a time and materials contract legally binding once signed?
Yes. A signed time and materials contract is generally enforceable as a contract, assuming the parties have authority and the agreement terms are clear. The enforceability does not depend on having a fixed total price; the rates, markups, and billing method provide the pricing mechanism. Disputes usually turn on documentation, approvals, and whether billed work was within the agreed scope. That is why clear records and a defined change process matter. Treating the contract as the single source of truth helps both parties.
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