Decision Guide

Fixed Price vs. Time & Materials

One offers certainty. The other offers a blank check. Which one is right for you?

Contractors love "Time & Materials" (T&M) contracts. Homeowners should almost always avoid them.

Why? Because in a T&M contract, you take all the risk. If the contractor works slowly, you pay more.

What is a Fixed Price Contract?

A Fixed Price (or Lump Sum) contract means you agree on a total number upfront (e.g., "$45,000"). If the job takes longer than expected, the contractor eats the cost.

What is Time & Materials (T&M)?

You pay for labor by the hour and materials at cost. Without a "Guaranteed Maximum Price" (GMP) cap, a $50k project can become $90k.

⚖️ Unsure about your quote type?

RenoSentry identifies if you are signing a Fixed Price or T&M deal, and flags the risks.

Analyze my quote type →

The Verdict

For 90% of residential projects, demand a Fixed Price contract. It forces the contractor to be accurate with their estimation.


Audit Your Quote Before You Sign.

We verify if your Fixed Price is fair, or if your T&M contract is missing a safety cap.

Audit My Quote Now ($49)