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Labor and materials
Labor and materials is a standard phrase in a contract for construction in which the buyer agrees to pay the contractor based upon the work performed by the contractor's employees and subcontractors, and for materials used in the construction (plus the contractor's mark up), no matter how much work is required to complete construction. This is opposed to a fixed-price contract, in which the buyer agrees to pay the contractor a lump sum for construction no matter what the contractors pay their employees, sub-contractors and suppliers.
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