Time and materials: what it means
DefinitionTime and materials is a billing method that charges for the hours actually worked at an agreed hourly rate, plus the cost of parts and supplies used, usually with a markup. The final amount is not known until the job ends, so it suits work with unknowns.
How it works in a service business
This method is common for repairs, troubleshooting and projects where the scope cannot be fixed in advance. It protects the business from underpricing a hard job. The tradeoff is customer anxiety, because there is no cap and every hour adds cost. A common mistake is starting without telling the customer the hourly rate, the markup on parts, or the minimum charge, which leads to sticker shock. Explain the rate up front, give a rough range, and agree on a point at which you will pause and ask before continuing. Keep clean time records and itemize parts so the invoice is easy to follow. Some owners cap the total or offer a flat rate once the problem is diagnosed.
Example
An electrician explains the hourly rate and parts markup before starting a troubleshooting call, and agrees to phone the customer if the repair looks likely to pass a certain amount.
Where Apex touches this
Rolling out
The screen and the rules are built and tested. Saving real customer data is not connected yet. Status as of 2026-10-07; the badge shows the least-built feature involved.
- ES14Budget-based estimating (labor, materials, overhead margin)(Rolling out)
- ES29Markup rules on materials(Rolling out)
- ES30Labor rate per tech/role(Rolling out)
Apex Flow Scheduler is in early access. See how we label status.