Federal Acquisition Regulation
Labor-hour contracts
FAR 16.602
Description. A labor-hour contract is a variation of the time-and-materials contract, differing only in that materials are not supplied by the contractor. See Contract type (FAR 12.207) (b),16.601 (c), and Time-and-materials contracts (FAR 16.601) (d) for application and limitations, for time-and-materials contracts that also apply to labor-hour contracts. See Contract type (FAR 12.207) (b) for the use of labor-hour contracts for certain commercial services.
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