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Project Management Time & Materials Template

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PROJECT MANAGEMENT TIME & MATERIALS TEMPLATE

This Time & Materials Agreement (Agreement) is entered into as of between Client Name: and Service Provider Name: .

Project Identification

Scope of Work

The Service Provider shall perform professional services on a time and materials basis as described below. Work shall be performed in accordance with the Project Plan, standards of the industry, and the schedule set forth in this Agreement.

Deliverables & Acceptance

The Service Provider will produce the deliverables listed below. Each deliverable will include explicit acceptance criteria. Acceptance testing will be performed by the Client within the acceptance_period specified; absent timely notice of rejection, deliverables are deemed accepted.

Acceptance Period (days):   Estimated Delivery Date:

Acceptance Period (days):   Estimated Delivery Date:

Timeline & Milestones

Project Start Date:   Project End Date (estimated):

Milestone 1 Due Date:   Milestone 1 Description:

Milestone 2 Due Date:   Milestone 2 Description:

Budget, Rates & Payment

This engagement is billed on a time-and-materials basis in accordance with the hourly rates, material charges, and markup shown below. All sums are payable in U.S. dollars unless otherwise agreed in writing.

Invoicing Frequency: Weekly Bi-weekly Monthly

Change Order Process

Any changes to scope, schedule, or budget shall be implemented only by a written change order executed by authorized representatives of both parties. Change orders will document the change, the impact on schedule, and the cost estimate. Work commenced without an executed change order is performed at the risk of the party that authorized the work.

Confidentiality

Each party agrees that all information marked or otherwise identified as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure (Confidential Information) shall be held in confidence and not disclosed to third parties. Confidential Information shall be used solely for performance and enforcement of this Agreement.

Confidentiality Term (years):

Representations, Warranties & Indemnity

Each party represents that it has authority to enter into this Agreement. The Service Provider warrants that services will be provided in a professional and workmanlike manner consistent with industry standards. The Service Provider will indemnify and hold harmless the Client from third-party claims arising from the Service Provider’s gross negligence or willful misconduct in performing the services.

Limitation of Liability

Except for liability arising from gross negligence, willful misconduct, or breach of confidentiality, neither party shall be liable for indirect, incidental, consequential, or special damages. The total aggregate liability of the Service Provider for any claim arising under or related to this Agreement shall not exceed .

Records, Audit & Records Retention

The Service Provider shall maintain complete and accurate records of time and materials supporting invoices for a period of three (3) years following the date of final payment. The Client may audit such records upon reasonable notice and during normal business hours; disputes arising from audits will be resolved in accordance with the Dispute Resolution section.

Force Majeure

Neither party shall be responsible for failure or delay in performance due to causes beyond its reasonable control, including acts of God, war, strikes, government action, cyber-attack, or pandemic, provided the delayed party gives prompt notice and uses commercially reasonable efforts to resume performance.

Termination

Either party may terminate this Agreement for convenience with days' prior written notice. Termination for cause may be immediate for material breach that remains uncured after ten (10) days' written notice. Upon termination, the Client will pay for all time and materials performed through the effective date of termination and reasonable wind-down costs.

Dispute Resolution & Governing Law

The parties will attempt good faith negotiation of any dispute. If unresolved within sixty (60) days, disputes shall be resolved by binding arbitration or litigation as selected by the Client: Arbitration Litigation

Governing Law: . Arbitration/Litigation Venue:

Miscellaneous

Entire Agreement: This Agreement, including any written change orders and referenced attachments, constitutes the entire agreement between the parties and supersedes prior proposals and understandings. Amendments must be in writing and signed by both parties. Neither party may assign this Agreement without the prior written consent of the other, except to a successor in interest in connection with a merger or sale of substantially all assets.

Client Name:

By:

Date:

Service Provider Name:

By:

Date:

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What the Project Management Time & Materials Template Is

Project Management Time & Materials Template is a contracting framework used to record hourly labor, material costs, and reimbursable expenses when project scope is variable. It defines labor classifications, hourly rates, approved materials, billing intervals, markup rules, invoicing procedures, and change-order handling. The template creates a clear basis for periodic billing, supports project cost tracking, and documents responsibilities for acceptance, dispute resolution, and termination so that invoices align with agreed rates and supporting time and materials records.

Why Standardize Time & Materials Terms

A standardized T&M template reduces ambiguity, speeds invoice approval, and lowers dispute risk by documenting rates, billing cycles, and change‑order procedures. It supports consistent accounting, audit readiness, and clearer client communications across project teams and subcontractors.

Why Standardize Time & Materials Terms

Who Typically Uses This Template

Typical users include project managers, contractors, procurement teams, finance staff, and client-side PMOs involved in variable-scope projects.

  • Project managers tracking labor, time entries, and materials costs on variable-scope engagements.
  • General contractors and subcontractors billing hourly labor and reimbursable materials.
  • Finance, procurement, and client-side PMOs approving invoices and reconciling project costs.

Combine this template with time-tracking and invoicing systems to keep accurate records and simplify periodic reconciliation and audits.

Core Sections Every Professional T&M Template Should Include

A complete template organizes contract basics, pricing rules, administrative procedures, and dispute-handling so both parties know how time and materials will be measured, billed, and approved.

Scope of Work

Clear project description, deliverables, site locations, and acceptance criteria so billable tasks and nonbillable work are unambiguous and auditable.

Rate Schedule

Hourly or unit rates by labor classification, overtime rules, and effective dates; specify whether rates include taxes or benefits to prevent billing disputes.

Timekeeping Rules

Required time-entry format, rounding rules, minimum increments, approval workflow, and supporting evidence for subcontractor hours and third‑party labor.

Materials Billing

Acceptable materials, required receipts, invoicing method (cost, cost-plus, fixed markup), and limits on bulk purchases or subcontracted supply charges.

Change Orders

Process to request, approve, and price scope changes; required signatures, notice periods, and how change work is added to invoices.

Payment Terms

Invoice schedule, payment window, retainage rules, interest on late payments, dispute notice periods, and conditions for withholding payments.

Stepwise Process to Complete and Issue the Template

Follow these steps to prepare, obtain approvals, and issue the T&M agreement for a new engagement.

  • 01
    Prepare SOW: Define tasks, deliverables, and responsibilities before pricing.
  • 02
    Enter Rates: Fill labor classifications and material markup in the rate table.
  • 03
    Attach Time Sheets: Link or attach required time-entry and receipt templates.
  • 04
    Sign & Distribute: Obtain signatures, then send executed copies to billing and PMO teams.

How to Configure an Online Workflow for This Template

Set up fields, authentication, and integrations so invoices and signed agreements flow to accounting automatically.

Field Configuration
Authentication Email link plus optional SMS code for signer verification
Template Fields Rate tables, date, signature, initials, and conditional change‑order sections
Approvals Sequential approver order with reminders and escalation settings
Integrations Connect to accounting or ERP systems for automated invoice posting

Technical Delivery and Integration Notes

Choose a signing platform that supports templates, audit trails, and integrations with accounting or project systems.

  • Formats: PDF, DOCX, Excel supported
  • Integrations: Salesforce, NetSuite, Microsoft 365
  • Authentication: Email link, SMS, or KBA

From Draft to Signed Agreement: Typical Flow

A straightforward online flow speeds approvals and preserves a complete audit trail for invoices and change orders.

  • Upload Template: Import the T&M template as PDF or DOCX.
  • Place Fields: Add rate tables, date, signature, and attachment fields.
  • Send to Signers: Specify signer order and authentication method.
  • Collect & Archive: Capture signed PDF and audit trail for records.

Required Document Fields at a Glance

Contractor Name: Full legal name
Client Name: Billing entity name
Effective Date: MM/DD/YYYY
Rate Table: Classification + hourly rate
Materials Policy: Markup and receipts
Signature Block: Name, title, date

Common Risks and Contractual Consequences

Late Payment: Interest and collection costs
Rate Disputes: Rejected invoices or withheld payment
Unapproved Work: Nonpayment for out-of-scope hours
Tax Exposure: Misclassified labor risks payroll tax
Record Gaps: Audit findings and client disputes
Contract Breach: Termination or damages claim

Frequent Preparation Errors to Avoid

  • Vague scope descriptions that allow different interpretations of billable work and lead to disputes over whether tasks are covered.
  • Omitting timekeeping rules such as rounding or minimum increments, which creates inconsistent billing across teams and audit issues.
  • Failing to document material markup and receipt requirements, causing disagreements over reimbursable supplier charges.
  • Neglecting change-order procedure or signature requirements, resulting in unauthorized work and unpaid invoices.

Typical Deadlines and Review Windows

Establish clear submission and response timelines to streamline invoicing, approvals, and dispute resolution.

Invoice Submission Window:

Submit invoices within 30 days of service period end

Payment Terms:

Net 30 unless otherwise agreed in contract

Dispute Notice:

Client must notify disputes within 15 days of invoice receipt

Retainage Release:

Retainage released 30 days after final acceptance

Change Order Response:

Respond to change requests within 7 business days

Key Milestones During a T&M Engagement

Track these project milestones to align billing cycles with project execution and closeout.

01

Project Kickoff

Establish scope, rates, and initial reporting templates.

02

Weekly Time Capture

Employees submit time entries each week for approval.

03

Monthly Invoicing

Compile approved time and materials for monthly invoices.

04

Final Reconciliation

Reconcile open items and close retained amounts after acceptance.

How to Save and Export the Completed Template

Choose a stable file format and attach required supporting records when saving executed agreements for long-term storage.

PDF Export

Save executed agreements as final PDF/A files to preserve signatures, timestamps, and embedded audit trails for legal reproducibility.

DOCX Template

Keep an editable DOCX master for updates and automated template generation, and version-control it in a document management system.

Excel Rate Table

Maintain a linked Excel or CSV rate table for import into billing systems, ensuring consistent calculations across invoices.

Supporting Attachments

Attach time sheets, receipts, change orders, and approval emails to each invoice for audit and client review.

Electronic Signature vs Digital (PKI) Signature

Understand the practical and legal distinctions when selecting an authentication approach for signed T&M agreements.

Criteria Electronic Signature Digital Signature (PKI)
Legal Status valid under esign/ueta valid and cryptographically verifiable
Technical Basis audit trail, timestamps certificate, public‑key cryptography
Non‑repudiation depends on audit evidence strong cryptographic non‑repudiation
Common Uses client contracts, invoices high-assurance regulated records

eSignature Pricing and Feature Comparison

Overview of starting prices and selected capabilities for common eSignature platforms. signNow is listed first per comparison guidelines.

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
HIPAA Compliant Yes Yes Yes No No

Practical Tips for Accurate and Efficient Completion

Adopt consistent practices to reduce billing errors, accelerate approvals, and strengthen auditability.

Use a single source of truth
Maintain one master template and track revisions with version control to ensure all teams use the same terms and rate tables.
Require standardized time entries
Enforce a consistent time-entry format and approval workflow so invoices map directly to approved timesheets without manual reconciliation.
Attach supporting documents
Always attach receipts, subcontractor invoices, and approved change orders to each invoice to minimize disputes and speed payment.
Audit and archive
Store signed agreements and audit trails in a secure system with access controls and retention rules aligned to regulatory requirements.

FAQs and Troubleshooting

Answers to common questions about execution, eSigning, enforcement, and recordkeeping for Project Management Time & Materials templates.


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