Sub project fee types

Who can use it?	Where is it?
Assistant project manager Project Manager Director Administrator System Administrator	Project > Project Plan > Sub Projects Project > Sub Projects

Create a Budget Estimate to help work out what the fee should be.  An invoice for Fixed Fee is worked out as a percentage claim or amount. The transactions allocated to Sub Projects with this fee type will not be displayed on an Invoice to the client. 

This fee type is designed to display the Transactions on an Invoice to your client, so they can see total hours worked for each Staff Rate. This creates a 'do-and-charge' scenario where there could be an unlimited amount of work carried out and Invoiced to a client. 

Sub Project Examples

Variation/Additional Work, Disbursements

Percent of Project is worked out by specifying a total Contract Value awarded to your firm, which is usually then broken down into 4 stages. Each stage is then awarded a certain percentage of the overall Contract Value - that added together would equal 100% of the Contract Value. The Contract Value is also a percentage value, but of the overall Construction Cost.    See the example below.

Sub Project Examples

Schematic Design (25%), Design Development (35%), Construction Documentation (45%), Contract Administration (15%)

Want to learn more? Construction Costs topic

Invoice the client at hourly rates, however set a limit that Synergy will Invoice up to. This enables you to have essentially a Fixed Fee sub project, with the ability to display the transactions on the Invoice to the client. You will not be able to Invoice beyond the Cap Value, unless it is increased. You can enter a 'zero' value until the Cap Value figures have been finalised.   

Sub Project Examples

This could be applied to any type of worked being carried out.

All transactions allocated to a Sub Project with this fee type will be automatically written off.

A WIP transfer out of No Billing fee types will restore the transactions to WIP ready for Invoicing. Use this if you find out later you can invoice the client for some of the work in the no billing sub project. Transfer WIP to a Sub Project that has the status of Active or Pending Invoice. The transactions can be moved to a different sub project, when this occurs, the transaction will restore to WIP ready for Invoicing providing the status is set to Active or Pending Invoice. 

Sub Project Examples

Proposal

It can be necessary to change the fee type mid way through the life of a Sub Project, to any of the fee types other than 'No Billing'. Any changes to the fee type or the % complete are tracked in the Project Audit.

The agreed fee value must equal the total invoiced value for the sub project, if the sub project is changed to 'fixed fee', or 'percent of project' or 'capped rates'. This restriction only applies when invoices exist. When defining the new agreed fee for the sub project you can also enter the % complete for the sub project. The fee type of hourly rate does not require these details to be entered.

Example

The client initially signed up for a small project scope of works at a hourly rate (time and materials) basis. A total value of $1500 has already been invoiced to the client for the Sub Project. The client was happy with how this work was completed, and they have now given you more work on the same sub project up to a fixed value of $5000. This requires a fee change from 'hourly rate' to 'fixed fee' on the sub project. The agreed fee of $5000 must be defined to save the fee type change.

Restrictions

• When Draft Invoices exist for the sub project the fee type cannot be changed.
• When construction costs are setup for the project the fee type cannot be changed.
• The fee type of 'No Billing' cannot be applied once an invoice exists for the Sub Project. All other fee types can be used for a Sub Project, but once invoices exist we cannot go backwards to the 'No Billing' fee type or it would confuse the revenue reporting for invoices and transactions.
• Agreed fee value must be greater than the current total invoiced value for the Sub Project. This applies when switching to the fee types 'Fixed Fee', 'Percent of Project' or 'Capped Rates'.