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.

Below you'll find a basic breakdown of these three project types. For more in-depth information, check out our article on understanding the 3 project types.

Time & Materials projects

Time & Materials 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 projects

Fixed Fee 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 project's fee amount.

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.

Non-Billable projects

Non-billable 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.

 

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