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What is typically percent saving

New YorkConstruction Contract

What kind of saving might you see when transitioning from T&M to unit price contracting?

20 replies

Sep 26, 2019
That's an excellent question, and I'm not sure I'm qualified to answer it. Ultimately, that'd probably depend on the circumstances of the job. Some jobs might be better suited for a simple time and materials arrangement, and that could provide efficiency savings. Other jobs might require the planning and organization that unit price contracts require, and that rigid structure might provide some efficiency against time and material agreements (particularly when there are a lot of compartmentalized tasks). For basics on both contract types, these resources might help: (1) Time and Materials Contract: What are the Pros and Cons? [Free Template Download] (2) Construction Contracts: What Is a Unit Price Contract, and When Should It Be Used? There are some other resources online that seem to shed more light on the topic: (1) The Pros and Cons of Pricing Options in Construction Contracts (2) Construction Pricing Models – Choosing an Appropriate Pricing Arrangement (3) Time-and-Materials vs Fixed Price: Which to Choose for Your Project? Finally, there's a great discussion on these contract types, in the roofing context, here: Best Pricing model - Unit Price vs Time and Material.
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Dec 24, 2020
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Dec 24, 2020
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Sep 2, 2021

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Sep 2, 2021

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Sep 3, 2021
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Sep 16, 2021

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Oct 11, 2021

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Oct 30, 2021
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Jun 28, 2022

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Jun 28, 2022

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Jun 28, 2022

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Mar 29, 2023

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Mar 29, 2023

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Apr 5, 2023

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