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: ___________________________