The time and material pricing is basically used in the construction and service industries to prepare the bill of the customers. The price is set by the cost of materials used with the standard labor rate per hour. The standard labor rates may not always relate to the labor costs but can depend on the market rates of the services for the certain skill set.
Uses of Time and Materials Pricing
There can be various industries where the time and materials pricing method can be applied:
- Consulting services
- Legal Activities
- Vehicle Repair
- Medical services
- Auditing, tax and accounting services