Time-and-Materials (T&M) contracts provide flexibility for both contractors and government agencies, making them a common choice for projects with uncertain scopes or shifting requirements. Instead of a fixed price, these contracts compensate businesses based on actual labor hours worked and material costs incurred.
Understanding terminations for convenience: when the federal government or a prime contractor issues a Termination for Convenience (T4C), it means they are ending a contract not due to contractor fault but for strategic, budgetary, or policy reasons. This can disrupt your business, but it does not mean you won’t be compensated. Understanding your rights and the required steps can help ensure you recover the costs of work performed and avoid financial hardship.