What a Driveway Time and Materials Contract Really Means
A Driveway Time and Materials Contract is the most transparent way to pay for driveway work when the final scope is hard to predict. Instead of one fixed bid, you agree to pay for two things:
- Time: Labor hours at a pre-set hourly rate (or daily crew rate).
- Materials: Actual invoices plus an agreed markup or handling fee.
This model is common on complex removals, steep grades, or sites where the base condition is unknown until excavation starts. Homeowners gain flexibility; contractors reduce "padding" that often inflates flat bids. The key is setting clear rules up front so surprises stay manageable.
Top Benefits of Using a Time & Materials Approach
1. Pay Only for What Gets Used
If the crew finishes in 14 hours instead of the estimated 18, you save four hours of labor. On a fixed-price bid, that savings stays with the contractor.
2. Easier Change Orders
Want to widen the apron after the forms are up? With T&M, the crew keeps working and you simply pay for the extra concrete and labor—no week-long delay waiting for a revised contract.
3. Transparency on Material Quality
You see the delivery tickets for rebar, sealer, or stamped color hardener. That eliminates guesswork about whether the contractor "downgraded" to increase margin.
4. Ideal for Partial Repairs
Patching a section of settled pavement or replacing one half of a circular drive is tough to scope in advance. T&M lets you stop when you're satisfied without renegotiating.
Typical Cost Breakdown for a Driveway Time and Materials Contract
Labor Rates
- Foreman / equipment operator: $65–$80 per hour
- Finishers / laborers: $45–$60 per hour
- Truck & driver (if billed separate): $85–$110 per hour
Material Allowances
Prices below are common in the Midwest and Southeast for 2024; add 8-12% on either coast.
- 4,000 psi concrete w/ 6% air: $135–$150 per cubic yard delivered
- #4 rebar 20-ft sticks: $0.55–$0.65 per linear foot
- Grade 8 base rock: $28–$34 per ton delivered
- Asphalt (type 7F): $75–$90 per ton
- Hot-rubber crack filler: $2–$3 per linear foot installed
Markup or Handling Fee
Most contractors add 10–20% on material to cover procurement, storage, and warranty. Anything above 20% should come with value-added service—same-day replacement of defective loads, on-site color matching, or a longer workmanship warranty.
Time & Materials vs. Fixed-Price vs. Cost-Plus
Fixed-Price Bid
Contractor shoulders the risk. Best for routine replacements where square footage, access, and base conditions are crystal clear. You pay more upfront for that certainty.
Cost-Plus (a cousin of T&M)
Similar transparency, but contractor adds a percentage to the total rather than billing hours separately. Can blur labor productivity incentives.
When T&M Wins
- Site has buried concrete or clay pockets that may require over-excavation.
- You want real-time control—add rip-rap edging or a decorative saw-cut border mid-project.
- Seasonal weather forces schedule changes; crews may work 4 hrs one day, 10 the next.
How to Negotiate a Fair T&M Agreement
1. Cap the Hours
Set a "not-to-exceed" ceiling, e.g., 60 labor hours, after which contractor must pause for written approval. Keeps budgets from spiraling.
2. Require Daily Logs
Every morning, the foreman emails photos, a labor tally, and delivery tickets from the previous day. You spot over-staffing or material waste early.
3. Lock Material Rates
Fuel surcharges on concrete or asphalt can jump mid-project. Ask the supplier to honor quoted rates for 30 days; contractor forwards that commitment to you.
4. Define Cleanup & Disposal
Broken chunks of old driveway can pile up fast. Clarify whether disposal is billed by weight or flat trailer load so you aren't guessing at the landfill scale.
Common Pitfalls & How to Avoid Them
1. Vague Hourly Categories
Insist laborers, finishers, and truck drivers are billed at different rates. Otherwise a $45/hr laborer might get lumped into a blended $70 "crew rate."
2. Double-Counting Delivery Charges
Some haulers bill a "truck hour" and a "mileage fee." Make sure the contractor isn't adding both to your invoice plus markup.
3. No Mileage or Equipment Mobilization Cap
A bobcat that breaks down can lead to an extra 3-hr round trip to swap machines. Cap mobilization at one hour each way unless the breakdown is your soil condition.
4. Skipping a Written Warranty
T&M doesn't mean "no responsibility." Demand at least a 1-year warranty on settlement, drainage, and surface flaking. Put it in the contract, not just the ad.
Homeowner Checklist Before Signing
- ☐ Hourly rates listed for every worker category
- ☐ Material markup % and handling fee spelled out
- ☐ Not-to-exceed ceiling on total cost
- ☐ Payment schedule tied to weekly invoices, not "draws"
- ☐ Daily time & material log requirement
- ☐ Written warranty and start/finish dates
- ☐ Proof of liability insurance & workers comp
- ☐ Mechanic's lien waiver upon final payment
Frequently Asked Questions
Yes, but both parties must sign a change order that voids the original lump-sum and establishes hourly rates, material markup, and a new cost ceiling. Photograph current progress so there's no disagreement over what's already "included."
Ask for GPS-stamped time-tracking apps or simple check-in photos showing the crew on site. Compare the contractor's daily log to your own doorbell camera or security footage. Most reputable crews have no issue providing either.
Often it does—especially on projects with unknown subsurface conditions—because you're not paying the contractor's risk premium. However, if the job goes smoother than expected, the savings are yours; if complications arise, costs can exceed the original fixed bid. Set a cost ceiling to limit downside.
For straightforward seal-coat jobs, a fixed price per square foot is usually simpler. T&M makes sense when extensive crack routing, patchwork, or multiple color coats make the final material usage unpredictable.