A Time and Materials Contract is an agreement between a business and a service provider, whereby the service provider agrees to complete a project for an agreed-upon final cost, payable in installments within a given timeframe. This type of contract is ideal for businesses that need access to specialized labor or materials quickly and may not have an exact scope of work or timeline determined upon contracting. The payment structure incentivizes the service provider to complete the work on time and within budget while still allowing flexibility as the project progresses.