Which of the examples below reflects a time and materials contract? A construction contractor agrees to provide subcontractors to pave a parking lot for \( \$ 22,000 \). A painting contractor agrees to paint a building for \( \$ 12,000 \), which includes materials. A software developer agrees to produce a program for \( \$ 10,000 \). An outside consultant agrees to produce a report for \( \$ 35 \) per hour worked, plus \( \$ 2.00 \) per page for his report.

In a time and materials contract, the costs are based on the actual time spent plus the cost of materials used, often leading to costs that can fluctuate based on the project's demands. This type of contract is ideal for projects where the scope isn't fully defined, allowing flexibility in both labor and material expenses. The example of the outside consultant agreeing to charge \( \$ 35 \) per hour worked, plus \( \$ 2.00 \) per page for his report, perfectly illustrates a time and materials contract. The charges reflect both the time taken to complete the work and the direct expenses incurred for materials, making it a prime example of this contracting method!