Billing rates

In Estimate, revenue can be forecasted in multiple ways. It is common for contractors to use the Pay Item & Proposal register to assign estimated costs to pay items and submit a price by filling out the owners bid form. However, for projects that do not use pay items, such as a time and material contracts or cost reimbursable type projects, Billing Rates can be used to easily estimate the price of the work for the project owner.

A billing rate is defined as how much the Contractor is charging the client to utilize resources from the Resource Rate Register. The billing rate can also be viewed as how much money a client is expected to pay for utilizing one of the resources for a specified amount of time. It is important for you as a contractor to have a way to more quickly see your charge rate to compare against what you will ultimately bill your client, also known as your billing rate.

Contractors need a reliable method to price projects utilizing various markup strategies with clear visibility into various costs that drive the markup amounts. It is important for contractors to be able to:

• Apply various costs that drive markups.

• Apply billing rate gains (difference between contractor’s cost versus billing rates/client cost).

• Have clear visibility into the true margin based on both cost and billing rates.

• Compare the cost and billing rates within the CBS.

As a result of appropriately pricing projects, contractors can now create and view a variety of Billing Rate reports such as:

• A summary of billing rates in lieu of the cost rates for a client (Estimate Summary reports).

• A cost item breakdown that shows associated cost categories, billing unit rates, and total billing amounts (Billing Rate Summary).

• An analysis of resources and their margins, utilization counts, and billing amounts, (Margin Analysis report).