Each Phase is a contract item with a contract-defined billing format used for invoicing. You can also watch this video.
Fixed Fee
This format is the most commonly used. It is for contracts where a stipulated sum of fees will be This format is the most commonly used. It applies to contracts where a fixed fee will be charged for the work. Whether it takes you 2 hours or 2 years to complete the job, billing will be based solely on a percentage of completion.
Hourly
This format is the second most common format. It requires you to enter time slips for the Phase, each with an associated Billing Rate. When you issue invoices, the system will generate one invoice line item for each billing rate associated with the billed time slips. We highly encourage you to enter a Target Fee Amount so the system can calculate the total fees and your work backlog. This target amount should be your best estimate of how much the hourly billings will ultimately total. Of course, you can adjust this target as you work through the project.
Hourly NTE
If your client insists on capping your Hourly billings, select this format. When billing for your time, if the amount billed exceeds the Not To Exceed limit, our system will prompt you to apply a discount to the invoice to offset the overbilling. Overbilling, then adding a discount, is a great way to show your client your total efforts.
Hourly & Expense NTE
This will work similarly to Hourly NTE but will include your reimbursable expenses and consultant Pass-Thrus in the Not To Exceed limit. The amount billed for your labor, expenses, and Pass-Thrus will be limited to a combined total.
Expenses NTE
This Phase, or probably better stated, Contract Item, is strictly used to track your invoicing of reimbursable expenses against a Not To Exceed limit. Any consultant Pass-Thrus tied to this item will also contribute to the billed amount. Like the other NTE formats above, if your billings exceed the NTE limit, you will be prompted to add a discount line to your invoice. Time (Labor) can not be charged to a phase with this format selected.
Pass-Thru NTE
This item is designed to track consultants who have a Not-to-Exceed contract with you. As their pay requests are recorded and passed through to your client, your consultant's total requested amount, including markup, will be limited to the cap you enter. Time (Labor) can not be charged to a phase with this format selected.