The T&M contract essentially creates a job where the contractor charges the client for only what is actually utilized or performed plus the agreed upon fee. It allows for the flexibility that is frequently needed when performing remodel work. Our clients need only pay for what is used, rather than inflated estimate amounts with hefty cushions embedded. We utilize a second round of estimating to eliminate as much uncertainty as we can so that the budget is as accurate as we can make it before we start swinging hammers.
We will usually contract for a small deposit during the pre-construction phase that pays for the design and selection as well as permitting and any work that is done to move the project to the starting line. This deposit is later credited into the larger project and is reflected in the estimating we provide.As we commence work we take a material deposit for initial costs that gets us going, usually 10-20% of the project cost, depending on the scope. This is far less than some of our competitors who demand a third or even half up front.
We typically bill every two weeks to ensure that we are never too far ahead of or behind our customers. Nobody wants to be owed a ton of money or the opposite- sitting on money that isn’t theirs. With steady, consistent billing we make sure we are always on level ground.
Depending on the project and the customer we obtain releases of lien, both partial and final, from our subcontractors as well as significant vendors. This gives peace of mind as well as legal protection to our clients as the project moves toward completion.