Estimator: R. MogaziCustomer Rep: J. Stevens (BPRR Roadmaster)Estimated Duration: 5 daysNTE Cap:$152,763
What is a Time & Material (T&M) Estimate?
A T&M estimate is fundamentally different from a lump-sum bid. Used when scope is fluid — emergency response, derailment cleanup, storm damage, MOW work under a master service agreement, or change orders. The customer pays for actual labor hours × agreed rates + actual materials × markup + actual equipment usage × agreed rates. The estimator's job is to negotiate the rate schedules and provide a Not-To-Exceed (NTE) cap based on expected scope.
Lump Sum vs. T&M
Lump sum = customer pays a fixed price; risk on the contractor. T&M = customer pays actuals at agreed rates; risk on the customer. Different cost code structure, different deliverable.
What gets "estimated" in T&M
Not quantities × unit prices — instead: Labor Rate Schedule (by trade × ST/OT/DT), Equipment Rate Schedule (by piece × daily/weekly), Material Markup formula, expected scope to back into NTE cap, plus Inclusions / Exclusions / Assumptions.
How it gets billed
Daily T&M tickets signed by the customer rep (e.g. roadmaster) capturing labor hours, equipment days, and materials used. Vendor invoices attached to weekly billing. NTE cap protects the customer; rate schedule protects the contractor.
1. Labor Rate Schedule
Burdened hourly rates by trade. Customer signs off on this schedule before work begins.
Role / Classification
Straight Time ($/hr)
Overtime (1.5×) ($/hr)
Doubletime (2×) ($/hr)
Est. Hours
NTE Buildup (ST × Hours)
Project Manager
$185
$185
$185
16
$2,960
General Foreman
$125
$188
$250
60
$7,500
Track Foreman
$110
$165
$220
60
$6,600
Welder (Certified)
$115
$173
$230
32
$3,680
Equipment Operator
$98.00
$147
$196
80
$7,840
Track Laborer
$78.00
$117
$156
240
$18,720
Flagman / RWP
$115
$173
$230
60
$6,900
Health & Safety Officer
$105
$158
$210
60
$6,300
Labor Subtotal
608 hrs
$60,500
2. Equipment Rate Schedule
Owned equipment at published daily/weekly rates. Operator is billed separately under labor.
Equipment
Daily Rate
Weekly Rate (4.5 days)
Est. Days
NTE Buildup
Production Tamper
$3,800
$17,100
4
$15,200
Ballast Regulator
$2,800
$12,600
4
$11,200
Hi-Rail Excavator
$2,400
$10,800
5
$12,000
Hi-Rail Crane (Speed Swing)
$2,800
$12,600
3
$8,400
Hi-Rail Pickup
$380
$1,710
5
$1,900
Backhoe
$850
$3,825
3
$2,550
Dump Truck
$850
$3,825
5
$4,250
Welding Truck
$950
$4,275
3
$2,850
Generator & Light Plant
$285
$1,283
5
$1,425
Equipment Subtotal
37 days
$59,775
3. Material & Markup Schedule
Pass-through costs at agreed markup. Vendor invoices attached.
Category
Markup
Notes
Material (cost pass-through)
+ 15%
Vendor invoices submitted with daily T&M ticket
Subcontractor (cost pass-through)
+ 10%
Sub invoices submitted weekly
Equipment Rental (third party)
+ 10%
Pass-through of rental invoices
Small Tools & Consumables
incl.
5% of straight-time labor (in lieu of itemized billing)
4. Estimated Materials (for NTE)
Best-guess scope. Actuals will be invoiced as used.
Description
Qty
UOM
Cost
Wood Ties (replacement)
80
EA
$5,480
Spot Ballast (#4 AREMA)
40
TON
$2,080
Track Bolts, Spikes, OTM (consumables)
1
LS
$4,500
Thermite Welding Kits
6
EA
$1,920
Misc Hardware
1
LS
$1,800
Material Subtotal (cost)
$15,780
+ 15% markup
$2,367
Material w/ Markup
$18,147
Inclusions
Mobilization within 24 hours of dispatch (call-out included)
All labor at the published rate schedule (ST / OT / DT per FLSA)
All equipment at published daily/weekly rates
Daily T&M tickets signed by customer rep before submittal
Standard PPE, hand tools, and consumables (covered under Small Tools markup)
Standby / weather hold time billed at applicable labor rates
Exclusions
Work outside the published rate schedule requires written change order
Crew lodging and per diem outside 50-mile radius of home yard
Damage to private property not caused by contractor negligence
Assumptions
Track is accessible and protected via flagging at customer expense (or billed)
Work hours: M–F 0700–1730 unless customer requests OT/weekend coverage
Materials at cost + 15%; vendor invoices attached to weekly billing
NTE estimate based on 5-day continuous response — extension by mutual agreement
5. NTE (Not-To-Exceed) Buildup
Customer cannot be billed above this cap without written change order
Labor
$60,500
Equipment
$59,775
Materials (+15%)
$18,147
Small Tools (5% of L)
$3,025
Subtotal
$141,447
Contingency (8%)
$11,316
NTE Total
$152,763
Demo note:A T&M template is rate-focused, not quantity-focused. The deliverable to the customer is really the Labor Rate Schedule + Equipment Rate Schedule + Markup Formula— the NTE estimate is supporting context, not a fixed price. Daily T&M tickets in the field, signed by the customer rep, drive actual billing.
Where labor lives in T&M: separately from the lump-sum cost code structure. T&M labor is by role(foreman, welder, laborer) at burdened hourly rates with ST/OT/DT splits — not embedded in "work line items" like a lump-sum estimate.