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.