Can a T&M agreement be electronically signed?

Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted; ensure the signature demonstrates intent, consent, attribution, and reliable record retention.

Do I need a notary or witness for a contractor agreement?

Generally no for standard commercial contracts, but some states or specific clauses may require notarization or witnesses; verify with state law or counsel for transactions affecting real property or statutory requirements.

What documentation should be attached to each invoice?

Attach task-level time sheets, receipts for materials, approved change orders, and any delivery or acceptance evidence to support billed amounts and speed approval.

How should disputes over time entries be handled?

Follow the contract’s dispute-resolution clause: typically require written notice within a specified window, attempt informal resolution, then mediation or arbitration if unresolved per the agreement.

What happens if the billed party claims lack of authorization?

If authorization procedures (e.g., written change orders or designated approvers) are followed, the signed agreement and audit trail support invoice validity and defenses against unauthorized‑work claims.

How long should I keep signed agreements and invoices?

Retain for at least three years after filing for tax per IRC §6501(a), seven years for commercial disputes, and six years for HIPAA-related records (45 CFR §164.530(j)) where applicable.

Electronic Signature
Templates
Project Management
Project Management Time and Material Agreement

Project Management Time and Material Agreement

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PROJECT MANAGEMENT TIME AND MATERIAL AGREEMENT

Project Identification

Project Title Project ID Client Name Client Address Service Provider Name Service Provider Address Project Manager (Provider)

Agreement Recitals and Effective Date

This Time and Material Agreement (the "Agreement") is entered into effective as of by and between Client Name: and Service Provider: .

The parties agree that the Service Provider will perform the services described below on a time and materials basis subject to the terms and conditions set forth in this Agreement.

Scope of Work

Detailed Scope of Work Out of Scope Items

Deliverables and Acceptance

The Service Provider will produce deliverables as set forth below. Each deliverable shall be accompanied by acceptance criteria. Client shall accept or provide written objections within the acceptance period specified.

Deliverable 1 Description Acceptance Criteria Deliverable 2 Description Acceptance Criteria

Timeline and Milestones

Project Start Date: Projected End Date:

Milestone 1 Milestone 2

Budget, Rates, and Invoicing

Billing Method: Hourly Daily Fixed Price (estimated)

Primary Resource / Role Secondary Resource / Role Estimated Total Cost Payment Schedule and Terms Late Payment Fee Reimbursable Expenses

Change Order Process

Any changes to the Scope of Work shall be executed only by written Change Order which shall describe the change, the impact to schedule, and the cost. Change Orders require approval as provided below.

Approval Threshold (amount requiring written approval) Change Order Procedure

Confidentiality

Each party shall treat as confidential all information disclosed by the other party that is identified as confidential or that reasonably should be understood to be confidential given the nature of the information. Confidential information shall not include information that is publicly known, lawfully received from a third party, or independently developed without use of the other party's confidential information. The receiving party shall use at least the same degree of care to protect Confidential Information as it uses to protect its own confidential information, but in no event less than reasonable care.

Intellectual Property and Deliverable Ownership

Subject to Client's timely payment of all amounts due, the Service Provider hereby assigns to Client all right, title and interest in deliverables created specifically for Client under this Agreement. Service Provider retains ownership of preexisting materials, tools, templates, and methodologies, and grants Client a non-exclusive license to any such preexisting materials embedded in the deliverables to the extent necessary for Client's use of the deliverable.

Exceptions or Special IP Terms

Warranties; Liability; Indemnification

Service Provider warrants that services will be performed in a professional and workmanlike manner consistent with industry standards for a period of 90 days following acceptance of each deliverable. EXCEPT FOR THE FOREGOING WARRANTY, SERVICES AND DELIVERABLES ARE PROVIDED "AS IS" AND SERVICE PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED.

The parties' aggregate liability for any claim arising out of or relating to this Agreement shall not exceed the amount paid by Client to Service Provider under this Agreement in the 12 months preceding the claim, except for liability arising from willful misconduct or gross negligence.

Liability Cap Amount

Each party shall indemnify, defend, and hold harmless the other party from third-party claims arising from its breach of this Agreement, gross negligence, or willful misconduct, subject to the indemnifying party's right to control the defense and settlement of such claims.

Termination

Either party may terminate this Agreement for material breach by the other party if such breach remains uncured for days after written notice. Upon termination, Client will pay Service Provider for all work performed and documented expenses incurred through the effective date of termination, including reasonably allocable wind-down costs.

Termination Notice Address

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to its conflict of laws principles.

Miscellaneous

Entire Agreement: This Agreement, together with any executed Change Orders, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior understandings. Neither party may assign this Agreement without the other's prior written consent, except to a successor by merger or sale of substantially all assets.

Additional Provisions or Amendments

Parties' Legal Entity Type (check all that apply)

Client Entity Type: Individual Corporation LLC Partnership

Service Provider Entity Type: Individual Corporation LLC Partnership

Client

Party Label:

By:

Date:

Title:

Service Provider

Party Label:

By:

Date:

Title:

What a Project Management Time and Material Agreement Is

A Project Management Time and Material Agreement is a contract where the client pays a provider for actual labor hours plus the cost of materials and approved expenses. It defines hourly rates, billing increments, materials mark-up, invoicing frequency, change-order procedures, and acceptance criteria. The agreement is used when scope is uncertain, work is variable, or detailed, itemized tracking is required. Clear definitions of resources, responsibilities, and approval gates reduce disputes and support enforceable billing tied to documented time entries and receipts.

Why this Agreement Matters for Project Outcomes and Risk Control

A Time and Material Agreement aligns payment with work performed, encourages accurate timekeeping, and provides flexibility for scope changes while preserving auditability and dispute resolution mechanisms under governing law.

Who Typically Completes a Time and Material Agreement

Project managers, procurement leads, contractors, and client legal or commercial teams usually prepare or approve this agreement.

Project managers and PMOs who track hourly work and need granular progress visibility for billing and forecasting.
Independent contractors and consulting firms that invoice by hour and supply project-specific materials or subcontractor services.
Procurement or legal teams that require standard clauses for change orders, indemnity, and payment terms across engagements.

Signatories should include authorized contracting officers or corporate representatives who can bind their organization and approve invoices.

Essential Elements to Include in a Professional Agreement

A robust Time and Material Agreement balances flexibility with controls; include measurable items and dispute-resolution steps to reduce ambiguity.

Rates

Define hourly rates by role or resource, billing increments (e.g., 15 minutes), and overtime or travel rate rules to avoid invoicing disputes.

Materials

Specify how materials are billed (actual cost, mark-up percentage, receipts required), approval thresholds, and handling of unused materials.

Change Orders

Describe written change-order process, required approvals, adjustments to schedule and cost, and how time and materials are estimated and authorized.

Timekeeping

State acceptable time-tracking methods, required supporting detail (task descriptions, start/end times), and submission cadence for review.

Invoicing

Set invoice frequency, required backup documentation, payment terms (net 30, 45), late fees, and dispute resolution timing for contested charges.

Termination

Include termination for convenience and cause, final accounting, return of materials, and settlement timing for outstanding invoices.

Core Data Fields Required in the Agreement

Parties: Full legal names

Effective Date: MM/DD/YYYY

Scope: Work description

Rates: Hourly/material rates

Payment Terms: Net days/late fees

Signatures: Authorized signers

Step-by-Step: Completing and Executing a Time and Material Agreement

Follow these steps to draft, approve, and execute the agreement while preserving a clear audit trail and change-order process.

01

Draft Terms: Document scope, roles, rates, materials policy, and billing cadence.
02

Review and Negotiate: Legal and finance review, confirm change-order approval thresholds.
03

Approve Signatories: Identify authorized signers and verify signing authority.
04

Execute and Archive: Sign electronically or on paper; retain signed copy with audit data.

Configuring an Online Workflow for Time and Material Agreements

Set up a repeatable digital workflow to collect approvals, manage change orders, and attach timekeeping evidence.

Field	Configuration
Signature Block	Require name, title, signature, date
Attachments	Allow time sheets and receipts (PDF preferred)
Approvals	Sequential order with manager and finance
Notifications	Email reminders and overdue alerts

Typical Routing and Submission Flow

A clear routing path ensures quick approvals and consistent invoice processing across teams.

Upload Document: Sender uploads final agreement and attachments
Place Fields: Add signature, date, and attachment fields
Assign Signers: Enter signer emails or generate secure links
Complete and Store: Signed copy plus audit trail archived

Digital Signing and Technical Considerations

Use a platform that supports secure eSignatures, audit trails, and required integrations for your business systems.

File Formats: PDF, DOCX supported
Integrations: Connectors for CRM/ERP
Authentication: Email, SMS, or advanced methods

Ensure any chosen solution supports retention, encryption (TLS/AES-256), and, where needed, HIPAA BAA or 21 CFR Part 11 compliance.

Key Timelines and Typical Deadlines

Common deadlines and timing expectations for T&M engagements help parties manage invoicing, approvals, and dispute windows.

Proposal to Execution:

Allow 3–14 days for negotiation and signature depending on complexity.

Invoice Submission:

Monthly or biweekly invoicing is common; define cutoff dates for time entry.

Payment Due:

Standard net terms are net 30 or net 45 from invoice date.

Dispute Window:

Require written disputes within 15–30 days of invoice receipt.

Change-Order Response:

Set a response period (e.g., 5–10 business days) for approvals.

Common Pitfalls to Avoid When Preparing a T&M Agreement

Vague scope or deliverable definitions cause frequent billing disputes and delay approvals—use measurable acceptance criteria for each task.
Unclear change-order processes lead to unapproved work and unpaid invoices—require written authorization for scope or budget changes.
Missing supporting documentation (time sheets, receipts) slows invoice processing and increases audit risk—mandate required attachments.
Ambiguous rate or billing increment language results in inconsistent invoices—specify rates by role and smallest billing unit.

Consequences of an Incorrect or Incomplete Agreement

Payment Delays: Invoices rejected

Tax Issues: Incorrect reporting

Breach Claims: Contract disputes

Lien Exposure: Construction lien risk

Regulatory Risk: HIPAA/data fines

Reputational Harm: Client relationship damage

Sample eSignature Vendor Pricing and Feature Comparison for T&M Agreements

Compare core pricing and compliance features relevant to signing and storing Time and Material Agreements. signNow is listed first per vendor comparison standards.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Real-World Examples of Time and Material Agreements

Practical examples show how teams use T&M agreements to manage variable scope and billing.

Optica Ventures — Operations

A small services firm adopted a T&M template to standardize billing and receipts

They required hourly logs and uploaded receipts for materials
The standardized approach reduced payment disputes and simplified month‑end reconciliation while preserving client flexibility.

Tech Data — Enterprise

A large integrator used T&M contracts for unpredictable integration work

The agreement included detailed change-order rules
Consistent approval checkpoints and documentation reduced invoicing cycle time and improved visibility across project teams.

Practical Tips to Improve Accuracy and Speed

Adopt consistent practices that reduce review cycles and make audits straightforward.

Clarify Scope and Acceptance

Define discrete tasks with measurable acceptance criteria and attach a baseline schedule so billable work is verifiable and disagreements are minimized.

Enforce Timekeeping Standards

Require task-level descriptions, start/end times, and approval fields in time sheets to support each billed hour and simplify audit trails.

Use Standardized Change Orders

Implement a short, consistent change-order form that records scope, schedule, cost impact, and signoff to keep ad hoc variations documented.

Automate Invoicing and Archival

Automate invoice generation from approved time records and store signed agreements plus supporting evidence in a secure, searchable repository.

Frequently Asked Questions About Project Management Time and Material Agreements

Answers to common questions about signing, enforceability, and dispute prevention when using Time and Material Agreements.

Need help? Contact support

Can a T&M agreement be electronically signed?
Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted; ensure the signature demonstrates intent, consent, attribution, and reliable record retention.
Do I need a notary or witness for a contractor agreement?
Generally no for standard commercial contracts, but some states or specific clauses may require notarization or witnesses; verify with state law or counsel for transactions affecting real property or statutory requirements.
What documentation should be attached to each invoice?
Attach task-level time sheets, receipts for materials, approved change orders, and any delivery or acceptance evidence to support billed amounts and speed approval.
How should disputes over time entries be handled?
Follow the contract’s dispute-resolution clause: typically require written notice within a specified window, attempt informal resolution, then mediation or arbitration if unresolved per the agreement.
What happens if the billed party claims lack of authorization?
If authorization procedures (e.g., written change orders or designated approvers) are followed, the signed agreement and audit trail support invoice validity and defenses against unauthorized‑work claims.
How long should I keep signed agreements and invoices?
Retain for at least three years after filing for tax per IRC §6501(a), seven years for commercial disputes, and six years for HIPAA-related records (45 CFR §164.530(j)) where applicable.

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