How to Get a Job For Project Managers

Learn how to write resume and interview

Leadership for Project Managers

Learn how to lead and drive project success.

Project Management Bootcamp

From a beginner to project management professional.

Agile Project Management and SCRUM with AI

Learn to run Scrum and Agile with AI.

time and materials (T&M) contract

A hybrid agreement that blends cost-reimbursable and fixed-price features: the buyer pays for actual labor time at agreed rates and for materials (often with markups), usually with a not-to-exceed cap to control total cost.

Key Points

  • Payment is based on actual hours worked at preset labor rates plus the cost of materials used.
  • Risk is shared: buyer exposure increases if effort grows; seller risk is lower than with fixed-price but higher than pure cost-reimbursable.
  • Often used when scope or duration is uncertain; contracts commonly include a ceiling price and require detailed time sheets and receipts.
  • Requires tight oversight and rate cards; can transition to fixed-price once scope is well defined.

Example

A team needs a data migration expert for an unpredictable amount of rework. They sign a T&M contract at $140/hour plus actual cloud transfer fees, capped at $80,000. The vendor submits weekly time sheets and receipts, and the buyer pays for approved hours and materials up to the cap.

PMP Example Question

A project requires specialized skills for an unclear amount of effort. The buyer wants predefined labor rates and a cap on total spending. Which contract type is most appropriate?

  1. Firm fixed-price (FFP)
  2. Time and materials (T&M) with a not-to-exceed ceiling
  3. Cost-plus-incentive-fee (CPIF)
  4. Lump-sum purchase order

Correct Answer: B — Time and materials (T&M) contract

Explanation: T&M pays for actual time and materials at agreed rates and often includes a ceiling price, making it suitable when scope and duration are uncertain but cost control is desired.

Project Management Bootcamp

Embark on a transformative journey with our Project Management Bootcamp at HK School of Management. Elevate from beginner to pro using the latest PMBOK and Process Groups Practice Guide. Our unique, engaging approach makes learning interactive and fun, replacing dull slides with dynamic doodles and real-life scenarios.

This hands-on program includes working on two full project plans. The first evolves as you learn, while the second culminates in a comprehensive plan, solidifying your expertise. You'll navigate real-world challenges, backed by quizzes and in-depth analysis, avoiding common pitfalls and setting you on a path to success.

Enhance your learning with downloadable materials and templates, invaluable for your future projects. The course covers essential topics like PMI, PMO, PMBOK, and project management ethics, delving into critical process groups and key areas such as scope, schedule, cost, and stakeholder management.

Learn from seasoned professionals and join a community of enthusiastic lifelong learners. Ready to master project management and lead with confidence? Enroll now and start your transformation!



Take Control of Project Performance!

HK School of Management helps you go beyond status reports and gut feelings. In this advanced course, you’ll master Earned Value Management (EVM) to objectively measure progress, forecast outcomes, and take corrective action with confidence. Learn how WBS quality drives performance, how control accounts really work, and how to use EAC, TCPI, and variance analysis to make smarter decisions—before projects drift off track. Built around real-world examples and hands-on exercises, this course gives you practical tools you can apply immediately. Backed by our 30-day money-back guarantee—low risk, high impact for serious project professionals.

Learn More