Contracts & ExecutionQuestion 887 of 1605

In a T&M contract dispute, the single most important documentation supporting the contractor's invoices is usually:

a.A signed liquidated damages clause
b.Photographs of the contractor's vehicles
c.Accurate daily records of labor hours worked and materials used, with supporting receipts
d.A copy of the contractor's license only

Explanation

Because a time-and-materials contract bills for actual hours and materials, the contractor's ability to justify and collect on invoices depends heavily on accurate, contemporaneous records: daily time sheets of hours worked and detailed material logs backed by receipts. Without such documentation, T&M billings are easily disputed. A license copy, a liquidated damages clause, or vehicle photos do not substantiate the actual labor and material costs charged.

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Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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