Time & Materials are projects in which you agree with the client on payment based on the billed hours of your employees. Each employee will have two rates - for income and for cost. The income rate is the amount that your client will pay for an hour of work, and the cost rate is the amount that you will pay your employee for work. Profit from that project will be the difference between income and cost.
This is a hypothetical example!
John's company has acquired a project deal with Company B. Company agreed on 4 employees, two Frontend Developers, one Backend Developer and UX/UI Designer. The agreement states that Frontend Developers will be paid 100 € per hour, Backend Developer will be paid 120 € per hour and UX/UI Designer will be paid 80 € per hour. John, based on their contracts, pays his Frontend Developers 70 € per hour, Backend Developers - 90 € and UX/UI Designers - 55 €. The project will last 6 months. When John creates a project in Primetric, he needs to choose Time & Materials. When he adds employees, he needs to in the Budget tab of Assignment Hour rate, he needs to type in the amount agreed with the Company B. When he is assigning a contractor, he also needs to check "Use default" for Hour Cost.
When the project will run and employees will log billable hours, at the end of each month, during settlement, John will settle work for cost, which will be billable hours x cost rate, and work for income which will be billable hours x income rate for each employee.