What’s the difference between Time & Materials, Fixed Fee, and Non-Billable projects?

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When you create a project, you'll need to choose its project type: Time & Materials, Fixed Fee, or Non-Billable. Each project type also affects certain reports.

Here's a basic breakdown of these three project types:

Time & Materials

These projects bill by the hour at specific billable rates (e.g., $100 per hour)—the more hours you work, the more you charge. You might also charge for expenses incurred to complete the project (like software, airfare, mileage, etc).

Fixed Fee

These projects bill a set price, no matter how many hours are worked (e.g., $1,000 to build a website). You might also charge for expenses incurred to complete the project. These expenses may or may not be included in the fixed fee.

If you choose a fee-based budget and set up billable rates, you'll also be able to see what your hypothetical fees would be if the project were billed hourly. Look for the If billed hourly column in the project analysis page's Tasks/Team tabs.


These projects aren’t invoiced. They might be internal projects, pro bono work, etc. All tasks assigned to a Non-Billable project will be marked non-billable; therefore, all hours tracked to this type of project will also be non-billable.

For more in-depth information, check out our article on understanding the 3 project types.

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