Time and Materials Billing for Roofers: When It Makes Sense and How to Do It Right

Fixed-price contracts are the default in roofing and should be. Scope is predictable, materials are quantifiable, and customers prefer certainty. But there is a narrow set of jobs where time and materials (T&M) billing is the right answer and trying to fixed-price them gets you burned.

When T&M Makes Sense

• Emergency repairs with unknown scope: tree down on roof, storm tarp follow-up
• Leak diagnostics: 20 minutes on a call, or 4 hours chasing a mystery leak
• Service contracts for commercial property: recurring small fixes
• Decking replacement beyond quoted scope: sometimes quoted as a fixed overrun unit, sometimes T&M
• Insurance carrier self-pay work on the same property: scope discovery before full contract

When T&M Is Wrong

• Full roof replacements: always fixed-price
• Retail new-construction work: always fixed-price, customers want certainty
• Insurance restoration: always tied to Xactimate scope
• Any job where you can measure, quote, and commit: do not default to T&M because it feels safer. Fixed-price is more professional.

The Rate Structure

ItemT&M Billing Rate Labor (journeyman)$85 to $150/hour Labor (helper)$55 to $85/hour Truck charge (mobilization)$75 to $250 per trip Materials markupCost x 1.35 to 1.65 Minimum charge$350 to $500 After-hours rate1.5x standard

Your loaded labor cost runs $35 to $65 per hour per man. Billing at $85 to $150 covers labor, overhead, supervision, insurance, and profit.

Documentation Requirements

T&M work is disputed more often than fixed-price. Your documentation must be bulletproof:

1. Signed T&M authorization: customer signs the rate sheet and estimated range before work begins
2. Daily time log: each day signed by on-site customer representative (for commercial) or photographed start/end timestamps (for residential)
3. Material receipts: every receipt scanned and attached to the job
4. Photos of work performed: before, during, after, same as fixed-price
5. Daily progress summary: written narrative of what was done, what was found, what remains

Without this documentation, a dispute over T&M billing will go the customer''s way in court.

Markup Standards

Materials markup on T&M work is 35 to 65 percent. The reasons:

• You are holding inventory risk (pre-ordered material, change of plans)
• You are financing the material from purchase to payment
• You are handling warranty claims on the material
• You are providing product knowledge and selection

Below 35 percent markup, you lose money on materials. Above 65 percent, customers start sourcing their own materials and bringing them to you (do not let them do this, it voids your workmanship warranty).

The T&M Authorization Sheet

Every T&M job starts with a signed authorization. A basic template:

• Customer name, property address, contact
• Brief description of work (e.g., "investigate and repair water infiltration at north elevation")
• Labor rates (journeyman, helper, after-hours)
• Materials markup percentage
• Truck charge, minimum charge
• Estimated range with disclaimer (e.g., "estimated 4 to 8 hours, not to exceed $1,200 without customer approval")
• Payment terms (typically upon completion, NET 15 for commercial)
• Customer signature and date

Not-to-Exceed Clauses

Customers often ask for a not-to-exceed (NTE) cap on T&M work. This is reasonable. Include it:

• NTE without customer approval: $1,200 (or whatever range fits the job)
• Any work beyond requires written approval (text, email, signed change order)

Without NTE, customers get nervous the invoice will be open-ended. Adding it increases close rate.

Invoicing

T&M invoices show everything:

1. Date-by-date labor entries with hours, crew members, hourly rate
2. Material entries with receipt number or SKU, quantity, unit cost, markup, total
3. Truck charges, after-hours premiums
4. Photos attached or linked
5. Summary of work performed

An itemized T&M invoice is 3 to 5 pages. A fixed-price invoice is 1 page. That is the tradeoff.

Service Agreement Billing

Commercial property managers often want service agreements where you bill T&M for small repairs on a recurring basis. Structure:

• Monthly service fee (e.g., $200/month for property inspection and priority scheduling)
• T&M rates for actual repairs
• NET 30 invoicing
• Annual or bi-annual contract with agreed rate schedule

T&M vs Unit Pricing

An alternative to pure T&M is unit-based pricing for specific items:

• Decking replacement: $85 per sheet of 1/2" OSB, installed
• Pipe boot replacement: $125 per unit
• Valley flashing replacement: $35 per linear foot

Unit pricing feels more predictable to customers than pure T&M. Offer unit pricing where you have clean data on your costs.

Using T&M as a Lead-In

Some jobs start T&M and convert to fixed-price once scope is clear. Example:

1. Customer calls with a mystery leak
2. You quote T&M inspection at $350 minimum
3. Inspection reveals a failed valley flashing and 3 damaged shingles
4. You quote fixed-price $1,450 repair
5. Customer approves, T&M inspection credit applied

This gets you paid to diagnose and gives the customer a clear fixed-price for the actual repair.

RoofKnockers T&M Workflow

RoofKnockers supports both fixed-price and T&M job types. The T&M workflow captures daily labor logs, material receipts, and auto-generates the itemized invoice at job close. See features.

Related Reading

• QuickBooks Setup for Roofing
• Scheduling Software for Roofing

FAQ

Q: What percentage of our work should be T&M vs fixed-price?

A: For residential roofing, under 10 percent should be T&M. For commercial service contractors, 30 to 60 percent is normal. For storm restoration, near zero percent.

Q: Can I charge for drive time on T&M?

A: Varies. A flat truck charge is clean. Billing hourly drive time is possible but customers resist. Most contractors use a flat mobilization fee to cover drive time.

Q: What if the customer disputes the hours on a T&M invoice?

A: Your documentation wins or loses this. Daily signed timesheets, GPS data, photos, and material receipts create an undisputable record. Without them, you may have to negotiate down.