If you’ve gotten an electrical bid that felt padded, or watched a “fixed price” project balloon once change orders started, you’re not imagining it. Most commercial electrical contractors price project work as a fixed bid — and most fixed bids are built to protect the contractor from uncertainty, not to save you money. That’s why On-Site Electric shifted to service- based, time-and-materials (T&M) billing for the bulk of our commercial and industrial work. Here’s what that means and why it’s a better deal for you.
What T&M billing actually means
Time-and-materials billing means you pay for the labor hours actually worked and the materials actually used not a lump sum built on a contractor’s best guess of what a job might take. No padding for the unknowns. No “contingency” baked into the number before anyone’s picked up a tool.
Why most electrical contractors don’t price this way
Fixed-bid pricing exists because it’s less risky for the contractor. If a job runs long, they eat the difference so bids get built with cushion to cover that risk. You end up paying, on average, for the worst-case scenario, even on the jobs that go smoothly.
The tradeoff: a bid that looks like a clean, simple number, but usually isn’t the cheapest option once the work is actually done.
Why T&M works better for facility and maintenance electrical work
For service calls, panel upgrades, troubleshooting, and ongoing maintenance — the kind of work most commercial and industrial facilities actually need — T&M billing tends to come out ahead for a few reasons:
- You pay for real work, not risk cushion. No contingency built into every invoice.
- No incentive to cut corners to protect a bid. A contractor locked into a fixed price has a built-in reason to rush or under-scope. T&M removes that pressure.
- Transparent invoicing. You see labor hours and materials, not a black-box lump sum.
- Better fit for unpredictable work. Electrical troubleshooting in an older commercial building is inherently unpredictable – nobody knows exactly what’s behind the wall until they open it up. T&M prices that honestly instead of guessing and hoping.
When a fixed bid still makes sense
To be fair, T&M isn’t the right fit for everything. A large, clearly-scoped new-construction project with a defined design can make sense as a fixed bid, because the scope is genuinely knowable up
front. Where fixed bids get risky is exactly what most facility managers deal with day to day: existing buildings, aging equipment, and service work where nobody can fully scope it until they’re on-site.
What this means if you’re getting a quote from us
If you call us for a panel upgrade, an emergency repair, or ongoing facility maintenance, expect an honest estimate based on our experience with similar work – not a padded number designed to protect us from every possible surprise. You’ll see what you’re actually being billed for. Have questions about how a specific job would be scoped? Request a quote and we’ll walk you through it.
Frequently asked questions
What is time-and-materials (T&M) billing in electrical work?
T&M billing charges for the actual labor hours worked and materials used on a job, rather than a single fixed price agreed on before work begins.
Is T&M more expensive than a fixed bid?
Not usually. Fixed bids typically include cushion to cover the contractor’s risk of the unknown. T&M bills for the actual work performed, which often ends up costing less for facility and maintenance-type jobs.
Does On-Site Electric ever do fixed-bid work?
Yes, for large, clearly-scoped projects like new construction where the work is well-defined up front. Most facility and maintenance work is billed T&M because it’s more accurate and transparent.
How do I know I won’t be overcharged with T&M billing?
You receive itemized invoices showing labor hours and materials used, so there’s no black-box lump sum to question
Have an electrical project or service need?
We’ll give you an honest read on how the work should be scoped and priced – no padded bid, no runaround. Request a quote or schedule service.
