Can a T&M agreement be signed electronically?

Yes. Electronic signatures are legally enforceable where ESIGN (15 U.S.C. §7001) or state UETA rules apply. Ensure signers gave consent to do business electronically and that records are retained in a reproducible form.

Do I need a notarization or witnesses?

Most T&M agreements do not require notarization unless local recording or lien waiver rules demand it. Real estate conveyances and some affidavits typically need notarization; witness requirements vary by state.

Are remote online notarizations (RON) acceptable?

RON is permitted in many states subject to identity proofing and recording retention rules. Verify state notary laws before relying on RON for real estate or court-related filings.

What supporting documents should accompany invoices?

Attach daily time sheets, signed delivery receipts, material invoices, and approved change orders. Lack of supporting documentation is a frequent cause of disputed or delayed payments.

How do I revise or amend a signed T&M agreement?

Use a written amendment or signed change order specifying revised rates, scope, and effective date. Execute amendments with the same signature method as the original agreement to preserve enforceability.

How long must I keep signed agreements and records?

Retain signed agreements and supporting invoices for at least three years for tax purposes (IRC §6501(a)); healthcare-related records must be kept for six years (45 CFR §164.530(j)). State or contract terms may require longer retention.

Electronic Signature
Templates
Real estate
Real Estate T&M Agreement

Real Estate T&M Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

REAL ESTATE TIME AND MATERIALS AGREEMENT

This Real Estate Time and Materials Agreement ("Agreement") is entered into as of Effective Date: by and between Owner Name: and Contractor Name: .

Property Identification

Property Address Parcel / APN Number Legal Description

Recitals and Scope of Work

Contractor shall perform time and materials work at the Property for the scope described below. Work shall be performed in a professional manner in accordance with industry standards and applicable law. Contractor's obligations include labor, materials, supervision, and coordination required to complete the Scope of Work.

Scope of Work

Term; Access; Schedule

Work shall commence no later than Start Date: and is estimated to be substantially complete by Completion Date: . Owner shall provide Contractor with reasonable access to the Property during normal working hours, and Contractor shall take reasonable measures to minimize disruption to occupants.

Rates, Materials and Pricing

Contractor's charges shall be computed as follows:

Labor - Standard Hourly Rate Overtime Rate (if applicable) Materials - Markup Percentage Subcontractor Markup (if any)

Materials purchased for the Project shall be invoiced at Contractor's cost plus the materials markup percentage above. Contractor shall maintain invoices and receipts for materials and shall make such records available to Owner upon request.

Estimates, Not-to-Exceed and Change Orders

If Owner requires a not-to-exceed cost, state Maximum Aggregate Amount: Any work that would cause the aggregate cost to exceed that amount must be authorized in writing by Owner in a Change Order. Change Orders shall describe scope changes, price adjustments, and any change to the schedule. Contractor shall not proceed with changes until authorized in writing.

Authorized Change Order Contact

Invoicing and Payment

Contractor shall submit invoices for labor, materials, and approved subcontractor charges on a monthly basis or as otherwise agreed. Owner shall pay undisputed invoiced amounts within days of receipt. Late payments shall incur interest at per month or the maximum permitted by law, whichever is less.

Initial Deposit (if any) Retainage Percentage (if applicable)

Permits, Codes and Compliance

Contractor shall obtain and pay for all permits, inspections, and approvals required by applicable law unless otherwise agreed in writing. All work shall comply with applicable building codes, environmental laws, and zoning requirements.

Insurance; Licenses; Warranties

Contractor represents and warrants that it holds all licenses required to perform the work and shall maintain commercial general liability insurance and workers' compensation insurance in commercially reasonable amounts. Contractor warrants labor and materials for Warranty Period (days): days from substantial completion, subject to standard exclusions for normal wear and tear and misuse.

Insurance Requirements (limits)

Records, Access and Audit

Contractor shall maintain time records, material invoices, and subcontractor invoices. Owner shall have the right to inspect records and audit charges upon reasonable notice during normal business hours. Disputed items shall be resolved in good faith and payment of undisputed amounts shall not be withheld.

Indemnity; Limitation of Liability

Contractor shall indemnify and hold Owner harmless from claims arising from Contractor's negligence or willful misconduct. Except for indemnity obligations and liability for personal injury or death, each party's aggregate liability to the other for any claim arising under this Agreement shall not exceed the total amounts paid to Contractor under this Agreement for the work giving rise to the claim.

Default; Termination; Remedies

Either party may terminate this Agreement for material breach if the breaching party fails to cure within thirty (30) days after written notice. In the event of termination for Contractor's breach, Owner may complete the work and seek damages for the cost to complete. In the event of termination for Owner's breach, Contractor shall be entitled to payment for work performed, materials purchased, and reasonable demobilization costs.

Disclosures

The parties acknowledge the following representations regarding known conditions at the Property:

Lead-Based Paint Known: Yes No

Known Mold or Water Intrusion: Yes No

Prior Structural Damage or Repairs: Yes No

Notices

Owner Notice Address Contractor Notice Address

Governing Law; Entire Agreement

This Agreement shall be governed by the laws of the state in which the Property is located, without regard to conflict of laws principles. This Agreement contains the entire understanding of the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter hereof. Amendments must be in writing and signed by both parties.

Additional Terms

Special Conditions or Addenda

Owner:

By:

Date:

Contractor:

By:

Date:

What a Real Estate Time-and-Materials (T&M) Agreement Is

A Real Estate T&M Agreement is a contract used in construction, renovation, property management, or brokerage projects that charges the client for labor and materials at agreed rates plus allowable markups and fees. The agreement defines hourly labor rates, unit prices for materials, billing frequency, retainage or deposits, approval process for change orders, and recordkeeping requirements. It is commonly used where scope is variable or not fully defined at contract start, and it allocates risk by requiring documented time sheets, material receipts, and clear invoicing procedures to support payments and potential audits.

Why a Clear T&M Agreement Matters

A well-drafted Real Estate T&M Agreement reduces disputes by establishing rates, invoicing cadence, approval rules, and documentation standards up front. It protects both parties by making billing transparent and by defining limits on scope changes, allowing projects with uncertain scope to proceed while preserving auditability.

Who Typically Uses a Real Estate T&M Agreement

The agreement is used by property owners, general contractors, subcontractors, property managers, and real estate consultants who need flexible billing tied to actual labor and materials.

Owners and asset managers managing renovations, tenant improvements, or reactive repairs with uncertain scope.
General contractors and subcontractors who bill hourly or by unit price and must document labor and materials.
Property managers and brokers overseeing maintenance, emergency repairs, or ad hoc services for multiple properties.

Parties relying on variable scope or phased work prefer T&M terms because they enable work to begin quickly while preserving rights to audit and dispute individual charges.

Step-by-step: Complete a Real Estate T&M Agreement

Follow these core steps to prepare, review, and finalize a T&M agreement so billing is predictable and defensible.

01

Prepare Scope: Draft a baseline scope and list likely work categories and exclusions.
02

Set Rates: Specify hourly labor rates, unit prices, and materials markup percentages.
03

Approve Change Orders: Define written approval process for extra work and cost thresholds.
04

Sign and Archive: Obtain signatures, store executed copy, and set invoicing schedule.

Digital workflow settings to configure

When you complete or automate a T&M agreement online, configure signature order, required fields, and authentication to match risk and audit needs.

Field	Configuration
Template	Create reusable T&M template with locked core clauses.
Signature Order	Set sequential or parallel signing depending on approvals.
Authentication	Choose email, SMS code, or stronger multi-factor authentication.
Storage	Archive PDFs with audit trail in secure cloud storage.

Typical electronic signing workflow for T&M agreements

A standard online signing flow ensures documents are completed in order, authenticated, and stored with an audit trail for future reference.

Upload Document: Sender uploads the T&M agreement and selects a template.
Place Fields: Add signature, initial, rate, and date fields where required.
Send to Signers: Distribute via email or secure signing link with authentication.
Complete Audit: Signed copies plus timestamped audit trail are stored automatically.

Technical considerations for e-signing and eSubmission

Choose a platform that supports required authentication, audit trails, and integrations with your document storage and ERP systems.

Authentication: Email, SMS, KBA or multi-factor options depending on risk.
Integrations: Works with Salesforce, NetSuite, Microsoft 365, Google Workspace.
Document Formats: Accepts PDF, DOCX and produces ISO-compatible signed PDFs.

Core components to include in a professional T&M agreement

A complete Real Estate T&M Agreement balances operational detail with legal clarity so invoices are supported, scope changes are controlled, and liabilities are limited.

Scope of Work

Describe work categories, locations, and exclusions in sufficient detail so billable activities are unambiguous and measurable for invoicing and inspection.

Labor Rates

List rates per labor category, overtime rules, and effective periods; indicate whether travel and supervision are billed separately.

Materials & Procurement

Define unit pricing, allowable markups, procurement responsibility, delivery terms, and requirements for receipts and supplier invoices.

Change Orders

Set the process for written change orders, thresholds requiring owner approval, and the method for pricing additional work.

Billing & Payment

Specify invoice format, supporting attachments, submission cadence, payment terms, retainage, and remedies for late payment.

Records & Audit

Require time sheets, material receipts, daily logs, and permit data; reserve rights to audit submitted invoices within defined periods.

Security and compliance details to include or verify

Encryption: TLS 1.2/1.3 in transit

Data at Rest: AES-256 encryption

Audit Trail: Timestamped signer actions

Certifications: SOC 2 Type II available

Regulatory Support: ESIGN and UETA compliant

HIPAA: BAA available when required

Key risks and consequences of an incorrect agreement

Payment Disputes: Delayed or withheld payments

Liens: Risk of mechanic's lien or stop notices

Tax Exposure: Incorrect reporting or backup withholding

Breach Claims: Contractual damages or litigation

Permit Violations: Stop-work orders and fines

Recordkeeping Failures: Loss of audit defense

Common mistakes to avoid when preparing a T&M agreement

Vague rate schedules that omit overtime or travel premiums cause billing disputes and client pushback during invoicing.
Missing or inconsistent change order procedures allow contractors to claim additional costs without documented approval.
Failure to require receipts and time sheets increases the risk of rejected invoices and audit exposure.
Not specifying retention, invoice due dates, and late fee rules can lead to cash-flow problems and contract enforcement disputes.

Comparing eSignature vendors for executing Real Estate T&M Agreements

Vendor capabilities and pricing differ; the table below lists starting prices and key plan limits. Confirm plan details with each vendor before purchase.

	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 trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Available on premium plans	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Real-world examples of T&M agreements in use

These brief examples show how organizations use T&M agreements and digital signatures to manage projects and compliance.

Martin Properties — Tim Martin

Tim Martin used online T&M agreements to process tenant improvement work efficiently.

He highlighted mobile signing and offline capability.
I can process and execute all of these documents online with 100% compliance and built-in security, whether on mobile or working offline, enabling faster turnaround and fewer on-site meetings.

Optica Ventures — Brian Fitzgibbons

Optica standardized T&M templates for recurring repairs and renovations.

Templates reduced review time by streamlining approvals.
The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers, reducing administrative burden and dispute potential.

Frequently asked questions about Real Estate T&M Agreements

Answers to common questions on e-signing, notarization, dispute prevention, and recordkeeping for T&M agreements.

Need help? Contact support

Can a T&M agreement be signed electronically?
Yes. Electronic signatures are legally enforceable where ESIGN (15 U.S.C. §7001) or state UETA rules apply. Ensure signers gave consent to do business electronically and that records are retained in a reproducible form.
Do I need a notarization or witnesses?
Most T&M agreements do not require notarization unless local recording or lien waiver rules demand it. Real estate conveyances and some affidavits typically need notarization; witness requirements vary by state.
Are remote online notarizations (RON) acceptable?
RON is permitted in many states subject to identity proofing and recording retention rules. Verify state notary laws before relying on RON for real estate or court-related filings.
What supporting documents should accompany invoices?
Attach daily time sheets, signed delivery receipts, material invoices, and approved change orders. Lack of supporting documentation is a frequent cause of disputed or delayed payments.
How do I revise or amend a signed T&M agreement?
Use a written amendment or signed change order specifying revised rates, scope, and effective date. Execute amendments with the same signature method as the original agreement to preserve enforceability.
How long must I keep signed agreements and records?
Retain signed agreements and supporting invoices for at least three years for tax purposes (IRC §6501(a)); healthcare-related records must be kept for six years (45 CFR §164.530(j)). State or contract terms may require longer retention.

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