Which contract type is paid based on time taken and material consumed?

Which contract type is paid based on time taken and material consumed?

• A. Time & Material Contract
• B. GMP
• C. Force Account Work
• D. CM-at-Risk

Answer: (C)

When you pay based on the actual time spent and materials used, you’re looking at a cost-reimbursement, pay-as-you-go approach. This is exactly what force account work is: the owner reimburses the contractor for real costs of labor, equipment, and materials, plus an agreed overhead or fee. There’s no fixed price up front because the scope or amount of work isn’t precisely defined, so costs are tracked and paid as they are incurred. This contrasts with lump-sum or GMP setups where a single price or maximum is set before work begins, and with CM-at-Risk which is a project delivery method rather than a simple pay-for-time-and-materials arrangement.

When you pay based on the actual time spent and materials used, you’re looking at a cost-reimbursement, pay-as-you-go approach. This is exactly what force account work is: the owner reimburses the contractor for real costs of labor, equipment, and materials, plus an agreed overhead or fee. There’s no fixed price up front because the scope or amount of work isn’t precisely defined, so costs are tracked and paid as they are incurred. This contrasts with lump-sum or GMP setups where a single price or maximum is set before work begins, and with CM-at-Risk which is a project delivery method rather than a simple pay-for-time-and-materials arrangement.