The billing method is selected at deliverable level in the project budget. The available options are Fixed Fee and Time And Materials.
Billing methods
Method | Charging basis | Role of the estimate |
Fixed Fee | The agreed price for the deliverable, subject to approved changes to the agreement. | The estimate helps plan and monitor delivery. More time spent does not, by itself, increase the agreed fee. |
Time And Materials | Billable time and applicable materials or expenses, using the relevant rates and billing treatment. | The estimate supports forecasting. Check whether a T&M cap applies; time-and-materials billing does not always mean uncapped billing. |
Where the setting appears
In the project’s original budget editor, each deliverable displays its current billing method beside its name. Different deliverables can use different methods within the same project.
T&M caps
A time-and-materials deliverable may display a T&M Cap. Check the cap and the applicable claim value when reviewing what can be billed. Do not assume that all time and expenses can be charged without a limit.
Billing method versus task pricing
Fixed Fee and Time And Materials describe how the client is charged. Dynamic and fixed/override task pricing describe how a task’s budget and contract value are calculated.
A fixed-fee deliverable can still use detailed resource estimates. Using dynamic task pricing does not, by itself, make that deliverable time-and-materials.
Recorded work and invoices
A time entry or expense record is not itself an invoice. Billability, rates, allocations and the project’s claims and invoicing workflow determine what is charged.
Related explanation
Project milestones are schedule dates only and don't affect billing. See What milestones are and when to use them.