Difference between Time and Materials and Cost Plus Fee

practice management
1

Hi All,

Following on from our discussion about Cost Plus Fee during today’s Sunday workshop, a question came up regarding the difference between cost plus and time and materials. I found an article that I felt describes the differences quite well, and the key difference between the two is how the contractor factors in profit.

https://www.netsuite.com/portal/resource/articles/accounting/time-materials-vs-cost-plus.shtml#:~:text=The%20key%20difference%20between%20the,of%20the%20project’s%20total%20cost.

I hope the community finds this helpful and let me know if you have any additional questions!

Best,
Coach Thomas