In order to facilitate the variables involved in project management, a variety of contractual arrangements have been developed that have been designed to meet the needs of the parties involved. The time and material (T&M) contract is one such instrument that provides an alternative to standard, boilerplate contracts.

In a time & material (T&M) contract, both parties agree to unit rates that have been predetermined by both parties in advance for the category of senior engineers. This is also the case in fixed-price arrangements. In project management, this type of contractual arrangement contains aspects of both cost-reimbursable and fixed-price contracts, and could be considered a hybrid of the two. Like a cost-reimbursable arrangement, the time & material (T&M) contract has no definite end. The full value of the contract is not defined at the time the contract is awarded. Therefore, similar to cost-reimbursement contract, time and material (T&M) contract can grow in value over the period they are in effect. The inherent flexibility of the time and material (T&M) contract makes it an attractive alternative for those involved in project management, as well as for the individuals involved.