A _____ is a contract used on small jobs with a high degree of uncertainty in which the contractor might charge an hourly rate for labor, plus the cost of materials, plus a percentage of the total costs.

A) labor-hour contract
B) service contract
C) supply contract
D) research and development contract
E) time and materials contract

Time And Materials Contract

A contract agreement where payment is based on the actual labor hours worked and materials used.

Labor-Hour Contract

A contract in which payment is made based on the number of hours worked, typically used for projects where the scope is not clearly defined.

Hourly Rate

The amount of money paid for each hour of work.