When creating a project with a Project Budget, each phase can be set to a Fixed or Hourly fee type. The fee type you select determines how that phase interacts with your Service Fee, how it can be invoiced, and how revenue is reflected in reporting.
This article explains how each fee type works so you can align your setup with your project structure and billing needs.
Fixed Fee Phases
A Fixed fee phase represents a guaranteed portion of your project’s Service Fee. The budget you assign to the phase is committed regardless of how many hours are worked. You might select this fee type when:
The phase has a known or estimated dollar amount
The fee is contractually agreed upon
The phase is guaranteed and always billable up to its planned amount
Impact on the Service Fee
Fixed fee phases draw directly from the project’s total Service Fee. As you assign budgets to individual phases, those amounts are deducted from the Service Fee. For example, if your Service Fee is $10,000 and you allocate 25% to the Schematic Design phase, $2,500 is assigned to that phase and deducted from the Service Fee.
Hourly Fee Phases
An Hourly fee phase represents work that is not guaranteed and is billed based on time worked. When an Hourly fee type is selected, the phase Budget field changes to a Max Cap, which represents a do not exceed amount. You might select this fee type when:
The scope or effort is unknown or variable
The client is billed based on actual hours logged
The phase is not guaranteed
Impact on the Service Fee
Hourly fee phases do not reduce the Service Fee. Instead, they function as standalone phases that bill against their own Max Cap. Because they are not guaranteed, they are treated separately from the core Service Fee.
Guaranteed vs Not Guaranteed Phases
Understanding whether a phase is guaranteed is critical to understanding how Monograph treats budgets.
Fixed fee phases are guaranteed and subtract from the Service Fee
Hourly fee phases are not guaranteed and do not affect the Service Fee
This distinction drives how phases behave across invoicing and reporting.
Invoicing Impact
Your fee type selection directly controls how each phase can be invoiced.
Fixed fee phases can be billed as a percentage or dollar amount of the planned phase budget
Hourly fee phases are billed based on actual hours logged by your team
Projects can include a mix of Fixed and Hourly fee phases. The invoicing options available for each phase depend entirely on how that phase was set up in the Project Budget.
Reporting & Forecasting Impact
Both Fixed and Hourly fee phases are included in reports, including Project Revenue, Team Forecast, Planned Profit, and Profit Drivers. Forecasted revenue is calculated using the values entered in each phase’s Budget or Max Cap field.
Fixed fee phases contribute forecasted revenue based on their assigned budgets
Hourly fee phases contribute forecasted revenue based on their Max Caps
Let Monograph know what you know. To ensure accurate reporting, always enter a value in the Budget or Max Cap field for every project phase. Missing values result in incomplete data and inaccurate revenue forecasts.