What type of contract provides for a fixed hourly rate along with costs for materials at cost plus handling charges?

A contract that provides for a fixed hourly rate in addition to the costs for materials at cost plus handling charges is known as a time and material contract. This type of contract is commonly utilized when it is challenging to estimate the time and materials required for a project in advance. It allows for flexibility in terms of labor and material costs, with the hour-based rate covering labor while the materials are billed at cost plus an additional markup for handling or overhead.

In contrast, a fixed-price contract entails a predetermined amount that is not subject to change, regardless of the actual costs incurred. A cost-reimbursement contract involves reimbursing the contractor for allowable costs incurred in performing the contract, often including a fee for profit, but does not include an agreed-upon hourly rate like in a time and material scenario. A unit rate contract is based on the quantity of work completed for a set price per unit, differing from the focus on labor hours and material costs found in time and material contracts.