What is Fixed Fee billing?
This is one of the billing options available. Each Client can be set-up with either this option, or the Time & Materials option. Each project has these two options, which also includes the budget amount for the project. These variables allow for flexible budgeting that can be distributed at the lower, project level.
The fixed fee option is used for projects budgeted to cost a pre-determined amount. This means that regardless of what the actual cost is to the firm for completing the project, the client will pay only the fixed fee amount for the completion of the project. The fixed fee amount must be indicated at initial project set-up.
To set this type of billing at the client level, perform the following steps:
Click to select the appropriate
Click to select Fixed
Fee. You have two fixed fee options under Project.
1. Time: Only the cost of the project participant's time can be applied to the specified fixed fee amount. Additional charges (e.g. expenses) are billed separately and not included in the fixed fee amount.
2. Time & Expense: All charges - project participant's time as well as project expenses - are included in the fixed fee.
Note: The Fixed Fee option is also available at the project level.
Document number: EL8125