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When creating a new project with the Project Budget, you have the option to set the fee type to either Fixed or Hourly for each of your phases. Understanding the impact each option will have on your phase, as well as other aspects of Monograph such as invoicing and reporting will determine which fee type is best used.
Project Budget
You might select a Fixed Fee type when:
You know or can estimate the phase budget that you'll need to work within
You and your client have an agreed contract amount per phase
The allocated dollar amount for this specific phase is guaranteed regardless of how many hours you work
All fixed fee phases will impact your Service Fee, the phase budget you assign will subtract from this fee as you allocate a portion to each individual phase.
For example, if your Service Fee is $10,000 and you assign 25% to the Schematic Design phase you will subtract $2,500 from the Service Fee (25% of 10,000 is 2,500)
You might select an Hourly Fee type when:
You do not know what the budget is for the phase, because it's either an unknown scope or additional services
You do not know if you'll work 1 hour or 100 hours on that phase, but the client will pay you in either setting, aka a truly hourly phase
You will notice that once the Hourly fee type is selected the Budget box in the phase will change to Max Cap and this phase is now considered not-guaranteed. All hourly fee type phases will not impact the Service Fee, since the phase is considered as a "stand-alone" and instead will work against its own Max Cap (Do not exceed) amount.
🏆 Best Practice: We suggest using the Fixed fee type whenever possible unless you are truly unsure of the number of hours you will work on a phase. Using an Hourly fee type allows you to remain fluid, ever adjusting the Max Cap or hours allocated as you continue your work on a not-guaranteed phase, such as Additional Services.
Invoicing
You may invoice your project with both Fixed or Hourly fee services, as well as a combination of both. How you set your fee type in the Project Budget will directly impact how you can bill your client when invoicing in Monograph.
Fixed Fee phases will be available to bill as a percent or dollar amount of the planned budget for each individual phase.
Hourly Fee phases will be available to bill based on the actual number of hours that have been logged towards that phase by your team.
You can learn more about invoicing, and how these fee types will impact the process by referencing this article.
🏆 Best Practice: The fee type you select in the Project Budget will directly impact the way you can invoice in Monograph. Take this into consideration depending on how would you like to bill your clients and make your decision on which fee type to best utilize prior to building out your project.
Reports
Both Fixed fees and Hourly fees are used for calculating data when running reports on the Analytics page, including Projects Revenue and Team Forecast
When running a Planned Profit or Profit Drivers report, both Fixed and Hourly fee phase projects will be included in your totals. You can choose to filter by specific fee type by using the filter option on each of these reports.
Report data stems from the Project Budget in regard to forecasted revenue. This means that the figures that determine your forecasted revenue are pulled from the Budget or Max Cap box for each individual phase.
🏆 Best Practice: Let Monograph know what you know! In order to ensure accurate reporting, always include a figure within the Budget or Max Cap box for every phase of your project. Missing this information will lead to incomplete data and will skew your forecasted revenue.