Under a time-and-materials construction contract, payment is generally based on:
Correct answer: C. Recorded labour time plus the cost of materials used
- A. The contractor's profit multiplied by project duration
- B. A single fixed price for the complete project
- C. Recorded labour time plus the cost of materials used
- D. The lowest price submitted by competing contractors
Explanation
A time-and-materials contract pays for verified labour hours and materials, usually with an agreed markup or fee. Unlike a lump-sum contract, the final amount is not fixed at the outset.
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About Construction Management and Estimation
Construction management covers planning, scheduling, resource control, contracts, procurement, site organisation, safety, quality assurance and project documentation. Estimation includes quantity take-off, rate analysis, bill preparation, valuation and cost control, with attention to the difference between direct and indirect costs and between an estimate, a tender and a final account.
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