Free template
Time & Materials Rate Card + Expense Policy Template
Download template
Time & Materials Rate Card + Expense Policy Template
This Time & Materials Rate Card + Expense Policy (the “Policy”) is effective as of [Effective Date] and applies between:
Client: [Client Legal Name] (“Client”)
Service Provider: [Provider Legal Name] (“Provider”)
Applies To (Optional): ☐ All services engagements ☐ SOW(s) numbered: [__] ☐ Project: [Name].
Governing Agreement (If Any): ☐ MSA dated [Date] ☐ Other: [Name/Date] ☐ None.
1. Billing Basics
1.1 Billing Model: Time & Materials (T&M). Client pays for time actually worked and approved expenses.
1.2 Billing Increment: ☐ 15 minutes ☐ 30 minutes ☐ 1 hour ☐ other: [].
1.3 Work Hours (Optional): [Business hours/time zone].
1.4 Time Tracking: Provider will track time using: ☐ timesheets ☐ ticketing system ☐ other: [].
1.5 Non-Billable Time (Optional): The following is not billable unless approved in writing: [commuting, internal training, general admin, etc.].
2. Rate Card
2.1 Rates (List roles and hourly rates):
[Role/Level] — $[Rate]/hour
[Role/Level] — $[Rate]/hour
[Role/Level] — $[Rate]/hour
[Role/Level] — $[Rate]/hour
2.2 Minimum Charges (Optional): ☐ none ☐ minimum [] hours per task/day ☐ other: [].
2.3 After-Hours / Rush Work (Optional):
After-hours rate: ☐ same ☐ +[__]%
Rush/expedited rate: ☐ same ☐ +[__]%
Requires prior written approval: ☐ Yes ☐ No.
2.4 Rate Changes: Rates may be changed only with [__] days’ written notice and apply only to work approved after the effective date of the change (unless the governing agreement states otherwise).
3. Budget Notifications (Optional)
3.1 Not-to-Exceed (NTE) Cap (If Any): $[Amount] (if set in an SOW).
3.2 Provider will notify Client when billed amounts reach: ☐ 75% ☐ 80% ☐ 90% of the cap.
3.3 If Client does not approve additional budget, Provider may pause work once the cap is reached: ☐ Yes ☐ No.
4. Reimbursable Expenses
4.1 Expenses are reimbursable only if they are:
reasonable and necessary,
directly related to the services, and
permitted under this Policy and the governing agreement.
4.2 Pre-Approval Thresholds:
Any single expense above $[__] requires written approval.
Total expenses above $[__] per month (or per SOW) require written approval.
4.3 Common Reimbursable Categories (Customize):
Travel (airfare, hotel, ground transport) — if pre-approved
Meals while traveling — up to $[__]/day (optional)
Shipping/postage/courier
Printing/materials for deliverables
Third-party tools/licenses required for the project — if pre-approved
Other: [List]
4.4 Non-Reimbursable Expenses (Customize):
Normal overhead (rent, utilities, office supplies)
Standard equipment (laptops, phones)
Commuting to Provider’s office
Alcohol/entertainment (unless approved)
Fines/penalties
Other: [List]
5. Documentation and Receipts
5.1 Provider will include receipts for: ☐ all expenses ☐ expenses above $[__] only.
5.2 Provider will describe each expense with: date, purpose, category, and amount.
5.3 Currency conversion (if applicable): [method/source].
6. Invoices and Payment
6.1 Invoice Frequency: ☐ weekly ☐ biweekly ☐ monthly.
6.2 Each invoice will include:
summary of hours by role
rates applied
description of tasks performed (high-level)
itemized expenses with receipts (as required)
6.3 Payment Terms: Net [] days from invoice date, unless otherwise agreed.
6.4 Invoice Disputes: Client must notify Provider of disputes within [] days of receipt, specifying the disputed amount and reason. Undisputed portions must be paid on time.
7. Compliance and Taxes
7.1 Provider will comply with Client site policies while on-site (if applicable).
7.2 Taxes: ☐ rates are exclusive of applicable taxes ☐ taxes included (specify).
7.3 Client is responsible for withholding only if required by law and agreed in writing.
8. Effective Date and Updates
8.1 This Policy is effective on the Effective Date and remains in effect until replaced in writing.
8.2 If there is a conflict between this Policy and the governing agreement, the governing agreement controls.
Signatures
Client: [Client Legal Name]
Name/Title: [Authorized Signer]
Date: [Date]
Signature: ___________________________
Service Provider: [Provider Legal Name]
Name/Title: [Authorized Signer]
Date: [Date]
Signature: ___________________________
Flash deal
Flash deal
Today
Today
No time to fill it up? Generate your custom agreement with AI Lawyer in seconds
What’s Included
Legal Research
Legal Research
Legal Research
Contract Drafting
Contract Drafting
Contract Drafting
Document Review
Document Review
Document Review
Risk Analytics
Risk Analytics
Risk Analytics
Citation Verification
Citation Verification
Citation Verification
Easy-to-understand jargon
Easy-to-understand jargon
Easy-to-understand jargon
Details
Learn more about
Time & Materials Rate Card + Expense Policy Template
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.
TIME & MATERIALS RATE CARD + EXPENSE POLICY TEMPLATE FAQ
What is a time & materials rate card?
A Time & Materials (T&M) Rate Card is a document listing the hourly (or daily) rates for specific roles or services. It is often attached to a Master Services Agreement (MSA) or a Statement of Work (SOW) so billing is clear and consistent.
What is an expense policy in a services relationship?
An Expense Policy sets the rules for which costs can be reimbursed (e.g., travel, shipping, tools), when approval is required, and what documentation must be provided. It helps prevent disputes and supports predictable billing.
Should this be separate from the SOW?
Often yes. A rate card and expense policy can apply across multiple SOWs, while each SOW defines project scope. This template is designed to be reused and referenced by multiple SOWs.
How do you avoid billing disputes?
Use clear billing increments, define what counts as billable time, set approval thresholds for expenses, and require itemized invoices. This template includes a dispute window and basic invoice content requirements.
Can you include a not-to-exceed cap?
Yes. Caps are often included in SOWs, but you can also state that work pauses if a budget threshold is reached. This template includes an optional budget notification and pause rule.
What is AI Lawyer?
AI Lawyer is an AI-powered assistant that helps you create and customize legal and business document templates online. It guides you through key sections, suggests wording, and explains complex concepts in simple language. AI Lawyer does not replace a licensed attorney or provide legal advice, but helps you prepare better documents faster and more confidently.
Similar templates
Other templates from
B2B Legal Documents
Money back guarantee
Free trial
Cancel anytime
AI Lawyer protects
your rights and wallet
Money back guarantee
Free trial
Cancel anytime
AI Lawyer protects
your rights and wallet
Money back guarantee
Free trial
Cancel anytime
AI Lawyer protects
your rights and wallet
Money back guarantee
Free trial
Cancel anytime