We have thought long and hard about changing our vocabulary from Phases to Contract Items because that is the function they serve. Each phase is a contract item with a contract-defined billing format that will be used when invoicing.
Fixed Fee: This format is the most commonly used. It is for contracts where a stipulated sum of fees will be charged for the work. Whether it takes you 2 hours to 2 years to complete the work, this will be billed based solely on a percent complete basis.
Hourly: This format is the second most common format. It requires you to enter time slips for the Phase, which will have an associated Billing Rate that is unique to the project. When you do your invoicing, the system will generate one invoice line item per billing rate associated with the time slips being billed. We highly encourage you to enter a Target Amount so the system can calculate things such as total fees and the backlog of work. This target amount should be your best guess as to where the hourly billings will end up. Of course, you can adjust this target as you work thru the project.
Cost Plus: This format is rarely utilized. Like Hourly, your invoice will be based upon your time slips. Rather than using billing rates, this format uses the hourly pay rate equivalent for each user and then applies a multiplier and profit markup that you set. We highly encourage you to enter a Target Amount so the system can calculate things such as total fees and the backlog of work. This target amount should be your best guess as to where the hourly billings will end up. Of course, you can adjust this target as you work thru the project.
Hourly NTE: If your client insists on you placing a cap on your Hourly billings, you will want to select this format. If, when billing for your time spent, the amount billed exceeds the Not To Exceed limit, our system will prompt you to add a discount to the invoice, which will offset the amount of the overbilling. This is a great way to show your client what your total efforts were while limiting your final amount billed.
Hourly & Expense NTE: This will work similarly to Hourly NTE but will also include your reimbursable expenses in the Not To Exceed limit. Here, your amount billed for both your labor and expenses will be limited to a combined total.
Cost Plus NTE: If your client insists on you placing a cap on your Cost Plus billings, you will want to select this format. If, when billing for your time spent, the amount billed exceeds the Not To Exceed limit, our system will prompt you to add a discount to the invoice, which will offset the amount of the overbilling. This is a great way to show your client what your total efforts were while limiting your final amount billed.
Cost Plus & Expense NTE: This will work similarly to Cost Plus NTE but will also include your reimbursable expenses in the Not To Exceed limit. Here, your amount billed for both your labor and expenses will be limited to a combined total.
Expenses NTE: This Phase, or probably better stated, Contract Item, is strictly used to track your invoicing of reimbursable expenses against a Not To Exceed limit. Any consultant pass thrus tied to this item will also contribute to the total amount billed. Just like the other NTE formats above, if your billings exceed the NTE limit, you will be prompted to add a discount line to your invoice. Time can not be charged to a phase with this format.
Pass Thru NTE: This item is designed to track consultants who have a Not To Exceed contract with you. As their pay requests are recorded and passed thru to your client, your consult's total requested amount will be limited to the amount your enter. Time can not be charged to a phase with this format.