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Flate Rate vs. Hourly Print E-mail

Although much of our consulting and training projects are done hourly, there are times when a flat-rate model can be desirable. Certain projects or sub-components of a project can be set to a flat-rate model after sales assement time or billable scope time.

See also: How We Estimate and Execute Projects.

The difference in pricing is based on the fact that a flat rate has a built in insurance that will guarantee the final price. Therefore, the initial flat rate will be higher than a similar hourly rate quote. For example, once an amount of hours is arrived at for a potential job, that amount would be increased by, for example, 25% to arrive at a reasonable flat rate figure.

Contrasted, hourly billing is desirable when scope work is not in the budget and you simply need professional services on a pay-as-you-go model. With our firm, the protections that govern houlry service are the following:
 

Flat rate versus hourlyWith hourly work, as long as the consultant provides a reasonable estimate based on professional experience, then you pay as you go for what you need only. In this model, we must report back to you regularly during the project lifecycle when there are additional needs or issues, providing you all viable options.

Further, a credentialed and competent consultant must be willing to take responsibility for their work. They will write down their hourly billing if they are at fault for something that goes wrong with one caveat: if there is a technical difficulty with Windows, for example, which slows down the consultant, the consultant should not be required to fix that PC for free. We would like to talk to you about your Act! requirements and help you to determine which of the two billing modles would be most beneficial for you.