Are electronic signatures legally valid for this contract?

Yes. Under the federal ESIGN Act (15 U.S.C. §7001) and UETA as adopted by most states, electronic signatures generally have the same legal force as handwritten ones. Ensure intent to sign, consent to electronic transactions, signer attribution, and reliable record retention to meet the four-part ESIGN/UETA test.

Do these contracts need notarization to be enforceable?

Generally no. Construction contracts are typically enforceable without notarization, but specific filings (for mechanics liens or recorded instruments) may require notarized signatures or acknowledgements depending on state law. Verify recording or lien steps with local counsel or the county recorder.

How should time and materials be documented for invoices?

Keep contemporaneous time logs showing worker name, date, start/stop times, hourly rates, and supervisor approvals. Attach vendor invoices or receipts for materials and preserve electronic audit trails to support reimbursements, lien claims, or tax reviews.

What are best practices for handling change orders?

Require written, signed change orders before work begins unless an emergency clause applies. Each change order should state scope, cost, schedule impact, and authorization. Document oral approvals promptly in writing to reduce disputes.

Who must sign and bind each party?

An authorized representative must sign with printed name, title, company, and date. For entities, confirm the signer's authority via corporate resolution or power of attorney where necessary to avoid later challenges to enforceability.

How can a party cancel or revoke the contract safely?

Follow the contract's termination clause: provide required notices, respect cure periods, and calculate obligations for work performed. Unilateral revocation without contractual basis risks damages, payment disputes, and lien claims; consult counsel before cancelling.

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Time and Material Building and Construction Contract

Time and Material Building and Construction Contract

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

What a Time and Material Building and Construction Contract Is

A Time and Material Building and Construction Contract is a construction agreement that compensates a contractor based on actual labor hours, material costs, and agreed markup rather than a fixed price. It typically sets the contractor’s hourly labor rates, materials pricing policies, invoice procedures, and the method for documenting time and expenses. Contractors and owners use it when project scope or site conditions are uncertain, when changes are expected, or for repair and maintenance work. The contract should define change-order processes, retainage, dispute resolution, insurance requirements, and applicable law to reduce later disputes.

Why this Contract Format Helps Reduce Billing and Scope Disputes

Using a Time and Material Building and Construction Contract clarifies how labor and materials are tracked and billed, allocates risk for unforeseen work, and creates a documented change-order process. That clarity supports timely payments and reduces disputes over scope, cost, and schedule.

Who Typically Prepares and Signs These Contracts

General contractors, subcontractors, construction managers, property owners, and project owners use this contract when scope is indeterminate.

General Contractor teams managing hourly crews and on-site procurement processes.
Subcontractors tracking labor, materials, and change-order approvals for variable tasks.
Owners or developers needing flexible billing where site conditions are uncertain.

Step-by-Step: Preparing, Reviewing, and Executing the Contract

Follow these steps to prepare, review, and execute a Time and Material Building and Construction Contract accurately and consistently.

01

Draft contract: Define scope, hourly rates, material markups, and retainage.
02

Attach exhibits: Add project schedule, rate sheets, and change-order form.
03

Review terms: Confirm insurance, indemnity, and payment timing align with law.
04

Execute: Sign, date, and distribute executed copies to all parties.

Digital Workflow Settings to Capture Time and Costs

Configure your digital workflow to capture time entries, material receipts, approvals, and a clear audit trail before sending to signers.

Field	Configuration
Time Entry Format	Hourly with date and worker ID
Material Receipts	Attach scanned receipts PDF
Approval Routing	Sequential with manager approval
Audit Trail	Include timestamps and IP addresses

How Documents and Approvals Flow from Field to Finance

The signing flow below shows how time sheets, material invoices, and approvals move from field personnel to accounting for final billing.

Upload documents: Attach contracts, time logs, and receipts.
Place fields: Insert signature, date, and numeric charge fields.
Send to signers: Route to workers, supervisors, and owner contacts.
Store records: Save signed PDF with audit trail and attachments.

Technical Requirements for Secure Electronic Execution

Use a platform that supports PDF, DOCX upload, multiple signers, and an immutable audit trail for compliance.

Formats supported: PDF, DOCX, HTML, Excel
Integrations: Procore, NetSuite, Salesforce, Google Workspace
Authentication: Email, SMS, 2FA options

Core Contract Elements to Include in Every Time and Material Agreement

A professional Time and Material Building and Construction Contract includes clear billing rules, rate schedules, change-order procedures, documentation requirements, insurance and indemnity provisions, and termination clauses.

Billing Basis

Describe hourly rates for labor categories, overtime rates, material markups, unit pricing, and the method for calculating totals on each invoice.

Timekeeping

Specify approved time-entry methods, required sign-offs, minimum time increments, and documentation needed to support labor charges for audit.

Materials

Define acceptable suppliers, markup percentages, handling of unused materials, and requirement to attach receipts or vendor invoices for reimbursement.

Change Orders

Detail written change-order process, authorization thresholds, pricing adjustments, and timing for work rescheduling and billing adjustments.

Insurance

List required general liability, workers' compensation, and additional insured endorsements, with minimum coverage limits and certificate delivery timing.

Dispute Resolution

Select governing law, venue, and remedies; consider mediation or arbitration clauses to expedite claims and limit litigation costs.

Security and Compliance Considerations for Electronic Contracts

Encryption: AES-256 encryption at rest.

In Transit: TLS 1.2/1.3 encrypted connections for data transmission.

Standards: SOC 2 Type II and ISO 27001 certified.

HIPAA: Business Associate Agreement required for PHI.

Audit Trail: Detailed timestamps, IPs, signer actions.

Access Controls: Role-based permissions and SSO options.

Penalties and Risks to Watch For

1099 Penalties: Late filing $60–$330 per form (IRC §6721).

Intentional Disregard: $660+ per form, no cap.

I-9 Violations: Fines $281–$2,789 per violation.

Contract Disputes: Unclear terms increase litigation risk.

Payment Delays: Stop-work claims and liens possible.

Improper Signatures: Mismatched authority can void agreement.

Common Preparation Errors to Avoid

Failing to set hourly rates and applicable overtime leads to ambiguous invoices and disputes over what constitutes billable time on site.
Not attaching material receipts or specifying markup percentages causes owners to question reimbursements and creates audit difficulties for the contractor's accounting department.
Omitting a written change-order process allows verbal directions to expand scope without price adjustments, producing claims and delayed payment cycles.
Using vague governing law or venue clauses forces parties into jurisdictional fights that increase legal costs and delay resolution of contractor-owner disputes.

Pricing and Capability Snapshot: signNow and Common Alternatives

The table compares typical entry-level pricing and key capabilities across common e-signature vendors; signNow is listed first per vendor ordering rules.

	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	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions About Time and Material Building and Construction Contracts

Answers to common practical and legal questions about preparing, signing, and enforcing Time and Material Building and Construction Contracts, including electronic execution and recordkeeping.

Need help? Contact support

Are electronic signatures legally valid for this contract?
Yes. Under the federal ESIGN Act (15 U.S.C. §7001) and UETA as adopted by most states, electronic signatures generally have the same legal force as handwritten ones. Ensure intent to sign, consent to electronic transactions, signer attribution, and reliable record retention to meet the four-part ESIGN/UETA test.
Do these contracts need notarization to be enforceable?
Generally no. Construction contracts are typically enforceable without notarization, but specific filings (for mechanics liens or recorded instruments) may require notarized signatures or acknowledgements depending on state law. Verify recording or lien steps with local counsel or the county recorder.
How should time and materials be documented for invoices?
Keep contemporaneous time logs showing worker name, date, start/stop times, hourly rates, and supervisor approvals. Attach vendor invoices or receipts for materials and preserve electronic audit trails to support reimbursements, lien claims, or tax reviews.
What are best practices for handling change orders?
Require written, signed change orders before work begins unless an emergency clause applies. Each change order should state scope, cost, schedule impact, and authorization. Document oral approvals promptly in writing to reduce disputes.
Who must sign and bind each party?
An authorized representative must sign with printed name, title, company, and date. For entities, confirm the signer's authority via corporate resolution or power of attorney where necessary to avoid later challenges to enforceability.
How can a party cancel or revoke the contract safely?
Follow the contract's termination clause: provide required notices, respect cure periods, and calculate obligations for work performed. Unilateral revocation without contractual basis risks damages, payment disputes, and lien claims; consult counsel before cancelling.

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