This type of contract or clause can help improve the contractor`s efficiency, as the contract price is limited to the amount of the cap, regardless of the duration of the project or the cost of the equipment. The T-M contracts can define a maximum number of hours of work using a clause similar to a condition that must not be exceeded. If the contractor exceeds a certain amount of working hours, overtime cannot be billed to the other party. This helps to prevent the problem of “efficiency reduction – more money,” which is a common problem in the case of T-M contracts. The next area that puts your attention in “PAIEMENT III” focuses on the frequency of payments from the customer to the independent contractor. Note that, in many cases, this frequency must logically complement the rate of pay. In this area, it is also necessary that only one option be used. Therefore, look for the statement “The contractor agrees to be paid” and then check the inbox instructions provided.