Overview of Time and Material Budget Type

Time and Material (T&M) is one of four project budget types in Forecast. 

This article includes:

• About Time and Material
• Creating a Time and Material project
• Time and Material Financial Calculations
• Related articles

About Time and Material

A Time and Material (T&M) project is an agreement where you bill based on the hours worked, at specific hourly rates. In other words, you invoice the work completed according to the number of hours logged by team members. Read more about billable hourly rates in Configuring your rate cards and Managing rate cards in projects. 

As the project progresses, team members track their time spent on tasks. The total number of hours logged directly translates into actual revenue for the project. Cost is derived from the internal hourly rates assigned to your team. 

Learn more about T&M financials and their calculations in Time & Materials Financials calculations.

Creating a Time and Material project

There are two ways to create a T&M project. Select Time and Materials when creating a new project, or update an existing project budget to Time and Materials. 

To create a new T&M project

1. 1. Click Projects in the top bar. 
   2. Select All Projects from the dropdown
   3. On the Projects page, click New Project.
      • Alternatively, click Create from anywhere in the platform and select Project.
   4. Complete the fields in Create new Project.
   5. Click More settings.
   6. Under Budget Type, select Time and Materials.
   7. Select a rate card and review the project details.
      
   8. Click Save and Continue.

To update an existing project to T&M

1. 1. 1. Click Projects in the top bar,
      2. Select All Projects from the dropdown.
      3. Locate the project you wish to update. 
      4. In the left side panel, click Settings.
      5. Select Financials. 
      6. In Project Budget Type, click on Change Budget Type.
         
      7. Select Time and Materials.
         
      8. Click Change.

Time and Material Financials Calculations

When reviewing your project financials, it is crucial to understand which numbers to focus on and where they come from.

Learn how Forecast tracks financials in T&M projects in Time & Material Financials Calculations.

Related articles

• Time & Materials Financials Calculations
• Managing rate cards in projects
• Reviewing your project's Financials
• Configuring project Financials Values
• Understanding Expense Items
• About Internal Hourly Cost and how it works