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Pricing Government Contracts Deep Dive / Contract Type and Pricing Risk

Time-and-Materials and Labor-Hour

Lesson 4 of 14

T&M/LH pricing uses labor rates and hours, often with ceilings and support documentation. Rates must include wage, fringe, payroll burden, overhead, G&A, and profit as allowed.

Key Takeaways

  • Track ceilings.
  • Support hours.

Common Mistakes

  • Not managing burn rate.
  • Treating ceiling as guaranteed revenue.

Related Course Templates

Simple Cost BuildLoaded Labor RateOption-Year PricingSubcontractor Quote ReviewWalk-Away Price90-Day Cash Forecast

Disclaimer

This course library is educational. It does not replace legal, accounting, cybersecurity, labor, or contracting advice. Users should always verify current requirements in the actual solicitation, contract, agency instructions, and official sources.