The projects billing modes
Timmi Project manages three kinds of projects:
- non-billable projects
- fixed price projects
- time & materials projects
In a fixed price project, the provider undertakes to deliver a deliverable at a fixed price. If the project takes less or more time than initially expected, it will still be charged the same price.
The risk of overrun is borne by the provider.
In fixed price projects, the respect of budget (initial estimation of time to be spent on the project that served to define the price) is crucial.
Time & materials
In this kind of project, the provider undertakes to provide ressources on a specific period. Whether the real period is shorter or longer than initially planned, the provider will always charge the real time spent.
The financial risk in case of overrun is borne by the client. On the other hand, in case of delivery sooner than expected, only the time spent will be charged.
It is possible to set up a project in "time & materials" billing mode, with the option "not to exceed time & materials" :
In case of overrun, the revenue will not exceed the revenue initially planned (price x initial time).
Financial details itemization
When you create a new project in Timmi Project, you choose the billing mode and the itemization level. It is the level that bears the financial information:
- team member
Let us take the example of a fixed price project. If the price estimation is based on the tasks, we choose an itemization by task. It enables to define for each task:
- the initial time budget
- the selling price
Let us take another example. Usually, the average bill rate is specific to the team member in a Time & materials project. We choose an itemization by team member. It enables to define for each team member:
- the start date and end date, and therefore the planned duration
- the bill rate