Billing
Typically billing is handled one of four ways;
1) Monthly,
2) Percentage based upon completion,
3) 50-50 or
4) upon completion, depending on the size and type of project.
- Monthly - This is applicable for larger projects spread over several months. Invoices are submitted monthly for the amount equal to the compensatory value during the pay period. Compensation schedule can be a percentage against a fixed fee amount, hourly, or a combination of both.
- Percentage based upon completion - This is applicable for fixed fee, turnkey projects usually lasting several months. Invoices are submitted for a percentage of the project total at predetermined times for specific phases or tasks. Typically the predetermined times are spelled out in the proposal. See the example below.
- Project initiation at time of signed agreement 10%
- Schematic design 10%
- Design development 20%
- Final design and or Construction Documentation 20%
- Production 35%
- Upon owner approval and acceptance final 5%
- 50-50 - This is best for medium sized projects or those with short time schedules. Very simply two payments are made, the first upon agreement and the second upon completion.
- Upon Completion - This is the most simple and best for small jobs. Very simply, payment is due after the work is complete. Note: Client must either be in good standing, or show good basis for this arrangement.
