What does "Time and Materials" mean?

Time and materials is a standard phrase in a contract for Southern Web's development services or any other piece of work in which an organization agrees to pay the Southern Web based on the time spent by the Southern Web's employees to perform the work. Time and Materials is generally used in projects in which it is not initially possible to accurately estimate the size of the project, or when it is expected that the project requirements would most likely change.

This is opposed to a fixed-price contract in which the organization agrees to pay Southern Web a lump sum for the fulfillment of a contract no matter what the effort entails for Southern Web.

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