⏱️ T&M Ticket Workflow Playbook
Capture time and material work as it happens. Get signatures same-day to avoid disputes. A T&M ticket without a signature is a donation.
Why T&M Ticket Management Matters
The One Rule That Matters
Get the signature the same day. Every day you wait, the chance of getting paid drops dramatically:
| Signature Timing | Likelihood of Payment |
|---|---|
| Same day | ~95% |
| Next day | ~75% |
| End of week | ~50% |
| Next month (with pay app) | ~25% |
| After the project | ~5% |
When to Use T&M Tickets
| Situation | T&M Ticket? | Notes |
|---|---|---|
| Owner/GC directs extra work, no agreed price yet | Yes | Track costs while negotiating the change order |
| Emergency work that can't wait for pricing | Yes | Document everything — negotiate later |
| Contract specifies T&M billing for certain work | Yes | Follow contract T&M provisions exactly |
| Differing site conditions — extra effort required | Yes | Support your change order with actual cost data |
| Disputed scope — you believe it's extra work | Yes | Protect yourself while the dispute is resolved |
| Work within your original contract scope | No | Don't T&M ticket your own contract work |
Roles and Responsibilities
| Role | Responsibilities |
|---|---|
| Foreman | Create T&M ticket in the field, document labor/equipment/materials in real-time, get daily signature |
| Superintendent | Review T&M tickets for accuracy, ensure signatures are obtained, submit to PM |
| Project Manager | Verify T&M tickets match written direction, compile for change order pricing or billing |
| GC / Owner Representative | Review and sign T&M tickets daily, confirm hours and resources |
Step-by-Step Process
Step 1: Get Written Direction First
Before starting any T&M work:
- Receive written direction — Email, RFI response, field directive, or COR
- If direction is verbal — Confirm in writing immediately:
"Per our conversation at 9:30 AM today, you directed us to [description of work]. We will track this work on T&M tickets pending a change order. Please confirm."
- Reference the direction on every T&M ticket — "Per field directive FD-007 dated 02/12/2026"
No Written Direction = No Payment
If you can't point to written direction for the extra work, you have no basis for billing. Get it in writing before you start, or confirm verbal direction in writing within hours.
Step 2: Create the T&M Ticket
Start a new T&M ticket at the beginning of each day the extra work is performed.
Header information:
| Field | Details |
|---|---|
| T&M Ticket # | Sequential number (TM-001, TM-002, etc.) |
| Date | Today's date |
| Project | Project name and number |
| Reference | Field directive, RFI, or COR number |
| Description of work | Specific description of extra work being performed |
| Location | Where on the project |
| Weather | Conditions that may affect work |
Step 3: Document Labor in Real-Time
Track as the day progresses — not from memory at the end of the day.
| Worker Name | Trade / Classification | Start Time | End Time | Total Hours | Rate | Amount |
|---|---|---|---|---|---|---|
| Mike Johnson | Carpenter | 7:00 AM | 3:30 PM | 8.0 hrs | $85/hr | $680 |
| Tony Reeves | Carpenter | 7:00 AM | 3:30 PM | 8.0 hrs | $85/hr | $680 |
| Dave Chen | Laborer | 7:00 AM | 12:00 PM | 4.5 hrs | $62/hr | $279 |
| Labor Subtotal | $1,639 |
Labor rate includes:
- Base wage
- Burden (taxes, insurance, benefits) — per contract markup provisions
- Small tools allowance (if applicable per contract)
Step 4: Document Equipment
| Equipment | ID/Size | Start Time | End Time | Total Hours | Rate | Amount |
|---|---|---|---|---|---|---|
| CAT 320 Excavator | EXC-03 | 7:00 AM | 2:00 PM | 7.0 hrs | $175/hr | $1,225 |
| Compactor (plate) | — | 10:00 AM | 2:00 PM | 4.0 hrs | $25/hr | $100 |
| Equipment Subtotal | $1,325 |
Equipment rates:
- Use contract-specified rates, or
- Rental rate equivalents (Blue Book, FEMA, or actual rental invoices)
- Include operator separately in labor section (don't double-count)
Step 5: Document Materials
| Material | Quantity | Unit | Unit Cost | Amount | Invoice # |
|---|---|---|---|---|---|
| 6" DIP Pipe | 40 | LF | $28.50 | $1,140 | INV-44821 |
| 6" MJ Fittings | 4 | EA | $85.00 | $340 | INV-44821 |
| Crushed Rock (3/4") | 8 | Tons | $42.00 | $336 | DEL-2208 |
| Materials Subtotal | $1,816 |
Keep all receipts, invoices, and delivery tickets — attach copies to the T&M ticket.
Step 6: Calculate Totals
| Category | Amount |
|---|---|
| Labor | $1,639 |
| Equipment | $1,325 |
| Materials | $1,816 |
| Direct Cost Subtotal | $4,780 |
| Overhead (15% per contract) | $717 |
| Profit (10% per contract) | $478 |
| Daily Total | $5,975 |
Use your contract markup rates. Common markups:
- Overhead: 10–15% on own work; 5–10% on sub work
- Profit: 5–10% on own work; 5% on sub work
- Bond premium: 1–2% (if bonded)
Step 7: Get the Signature — TODAY
At end of shift (or during the work if GC/owner is available):
- Present the completed T&M ticket to the GC or owner representative
- Walk them through the labor, equipment, and materials listed
- Ask them to review and sign
- If they agree — signature, date, and printed name
- If they dispute an item — discuss it, note the dispute on the ticket, get signature for the undisputed portion
- Give them a copy and keep the original
What if they refuse to sign?
- Note "Signature requested and refused" on the ticket
- Record the name of the person who refused and the date/time
- Send the T&M ticket via email or certified mail the same day
- Continue tracking on subsequent days
- Escalate to the PM for contractual remedies
Step 8: Submit and Track
- Submit copies to your PM and project file same day
- Compile T&M tickets with the associated change order or pay application
- Track cumulative T&M costs by directive/change order
- Include in monthly pay app with all backup documentation
T&M Ticket Best Practices
| Practice | Why |
|---|---|
| One ticket per day | Easier to sign daily, keeps records current |
| New ticket for each directive | Don't mix different extra work on one ticket |
| Include description of work | "Rock removal at Grid B/4 per FD-007" — not just hours and costs |
| Photo documentation | Photograph the work being done, conditions, equipment in use |
| Track waiting/standby time | If your crew is idle due to the change, that's billable time |
| Separate T&M from contract work | Don't mix base contract work with T&M on the same ticket |
| Keep originals | Never give up your only copy — provide copies to the GC/owner |
Common Mistakes
| Mistake | Consequence | Fix |
|---|---|---|
| No same-day signature | "We didn't have 3 guys there that day" — disputed | Sign every ticket, every day, no exceptions |
| Reconstructing from memory | Inaccurate, looks fabricated | Fill out the ticket in real-time during the work |
| No written direction | "We never told you to do that" | Get written direction before starting, or confirm verbally in writing |
| Missing material receipts | Can't prove material costs | Keep every receipt and attach to the ticket |
| Using wrong markup rates | Disputed, rejected, or underpaid | Know your contract markups before the first ticket |
| Waiting to submit with pay app | Months of unsigned tickets — good luck collecting | Submit and get signatures daily |
| Mixing base contract and T&M | GC argues "that's in your scope" | Separate tickets, separate cost codes, clear descriptions |
Metrics
| Metric | Target | Frequency |
|---|---|---|
| T&M tickets signed same day | 100% | Daily |
| Written direction on file | 100% of T&M work | Per directive |
| T&M submitted with pay app | 100% of outstanding tickets | Monthly |
| T&M collection rate | over 90% | Monthly |
| Average time from T&M to CO | under 30 days | Per directive |
Related Resources
| Resource | Link |
|---|---|
| T&M Guide | Time & Materials Guide |
| Change Order Playbook | Change Order Workflow |
| Daily Report Playbook | Field Reporting |
| Markup Calculator | Calculate Markup |
| Change Order Markup Calculator | CO Markup |