What is the difference between a fixed-price contract and a time and materials contract?

A fixed-price contract and a time and materials contract are two of the most common types of contracts used in construction law in Texas. Both of these contracts are used to protect the business owners and contractors who are working on construction projects. A fixed-price contract is the most common type of contract used in construction law in Texas. This type of contract sets out the payment amount for the project up-front, and the contractor agrees to complete the project for that amount of money regardless of how long it takes to complete the project. On the other hand, a time and materials contract sets out the payment amount based on the amount of time it takes to complete the project and the materials used. This type of contract is often used when the scope of the project is not known in advance. The contractor will provide an estimate of the cost of the project before it begins, but the final amount will be determined once the project is complete. In both cases, the contracts provide a way for the business owner to ensure that the contractor is paid fairly for the project. They also provide protection for both parties in the event of disputes.

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What is the difference between a fixed-price contract and a time and materials contract?

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